Strategy (MSTR) Stock: Plans to Sell $1.25 Billion in Bitcoin – Here’s Why

TLDR

• Strategy may sell up to $1.25 billion of Bitcoin to boost its cash reserve, now at $2.55 billion.
• The company launched two $1 billion share repurchase programs — one for common stock, one for preferred.
• Strategy’s mNAV dropped below 1 on June 27, meaning its financing advantage has effectively disappeared.
• The STRC preferred dividend was raised to 12%, and a minimum cash reserve policy covering 12 months of payments was set.
• MSTR traded at $82.31 at time of writing, down 3.5%, while Bitcoin was at approximately $60,275.

Strategy (MSTR) is making a sharp turn. The company that built its identity around buying and holding Bitcoin at all costs is now planning to sell some of it — and Wall Street is paying close attention.

Strategy Inc, MSTR

On June 29, Strategy filed plans to sell up to $1.25 billion worth of Bitcoin. The proceeds would be used to bolster its cash reserve, fund preferred stock dividends, cover interest payments, and meet other corporate obligations.

MSTR common stock rose around 5% in pre-market trading on the news, though it was trading at $82.31, down 3.5%, at the time of writing. Bitcoin itself was changing hands at approximately $60,275, up 0.6% over the prior 24 hours.

The company said Bitcoin sales would be made “from time to time” based on market conditions and capital needs — not on any fixed schedule.

A Model Under Pressure

For years, Strategy’s playbook was simple: issue securities, buy Bitcoin, repeat. That model worked beautifully when Bitcoin was climbing and the company’s mNAV — the ratio of its enterprise value to its Bitcoin holdings — sat comfortably above 1.

On June 27, that metric fell below parity. That means the premium that allowed Strategy to raise cheap capital and reinvest it in Bitcoin has effectively evaporated.

The company’s common and preferred shares have dropped hard alongside Bitcoin’s retreat. MSTR is down nearly 80% over the past year. The perpetual preferred shares Strategy began selling in 2025 — once a clever way to keep buying Bitcoin without diluting common shareholders — collapsed to below $75, well under the $100 par value needed to make those purchases economically viable.

The company also announced it would become more disciplined about issuing new common equity, particularly when the stock trades close to the value of its underlying Bitcoin.

Two new share repurchase programs of up to $1 billion each were established — one for Class A common stock, one for its preferred Digital Credit Securities.

A new board policy now requires Strategy to maintain a minimum cash reserve equal to at least 12 months of expected preferred dividend payments and interest expense. That reserve currently stands at $2.55 billion.

The First Crack Came Earlier

The writing was on the wall as far back as June 1, when Strategy disclosed it had sold 32 Bitcoin — its first sale since 2022. The amount was tiny relative to its roughly $51 billion in total holdings, but the symbolism hit hard.

Bitcoin critic Peter Schiff didn’t miss a beat. In a June 29 post, he called Strategy “now a Bitcoin seller,” referencing the company’s newly named Bitcoin Monetization Program.

FalconX senior derivatives trader Bohan Jiang offered a more measured read: “While there is more selling pressure on Bitcoin, it is definitely positive for the stock, and both the common and preferred shareholders.”

The STRC preferred dividend was raised to 12% as part of the announcement.

Bitcoin has been under pressure recently, falling below $59,000 last week before recovering modestly.

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