Strategy (formerly MicroStrategy) authorizes up to $1.25B in Bitcoin sales, shifting from 'never-sell' policy

By Neil Patel, The Motley Fool Published: July 4, 2026, at 3:55 PM PDT | 3 min read

Tickers: MSTR | BTC-USD | NVDA | DX-Y.NYB

In November 2024, Strategy (NASDAQ: MSTR) shares reached their all-time high of $473.83. As of July 1, the Bitcoin (CRYPTO: BTC) treasury company trades at just $93.39 per share. Investors have witnessed the cryptocurrency stock's precipitous fall.

The business continues to navigate the current bear market. It just announced a major shake-up to its strategy. Here's what investors need to know.

CEO Michael Saylor's Strategy Is Changing

On June 29, Michael Saylor's Strategy announced a new digital credit capital framework. Key components include:

• U.S. dollar reserve: A board-approved reserve that must equal at least 12 months of annual dividend payments and interest expenses.
• Stock repurchases: Authorization of $1 billion each for common stock and preferred stock repurchases.
• Bitcoin sales: A shift from the company's long-standing "never-sell-Bitcoin" posture to authorizing the sale of up to $1.25 billion of the top cryptocurrency.

Bitcoin continues to navigate a bear market, with the digital asset's price trading more than 50% off its peak. This soft market sentiment has negatively impacted Strategy shares, which were down 43% in the first six months of 2026.

When Bitcoin's price is rocketing higher, everything is fine. Strategy's balance sheet balloons in value, and because the company's stock provides investors with levered exposure to the crypto, its price rises even more.

But in the current market environment, Strategy is being forced to make adjustments. Growing Bitcoin per share remains the ultimate goal, and maintaining dividend payments on its STRC perpetual preferred equity product is also a priority.

Depending on where Strategy shares, its preferred equity stock, or Bitcoin are trading, the business can engage in whatever capital market transactions are accretive to its investors—whether buying or selling. The company has simply expanded its playbook to respond quickly to market conditions. Investors would reward any business that adapted like this.

Navigating Uncharted Territory

It's easy to be critical when Bitcoin is down so much. But history suggests that a troubling bear market often evolves into a raging bull market. Bitcoin still possesses tremendous long-term potential.

The market is also extremely judgmental of Strategy's actions. This negative perception likely stems from the fact that the investment community has never seen a business operate this way before. All of this is entirely unfamiliar to nearly everyone.

However, in theory, raising constantly debased fiat currency to accumulate Bitcoin—a scarce asset—to the benefit of shareholders is a logical strategy. Since Strategy's upside is so massive, all it needs to do is manage the downside and survive the bear markets. The new digital credit capital framework shows that the management team is doing what it believes is best.

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