Strategy announces major Bitcoin strategy shift, authorizes up to $1.25B in Bitcoin sales

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

Market Performance:

• MSTR: +7.90%
• BTC-USD: +0.39%
• NVDA: -1.39%
• DX-Y.NYB: +0.17%

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 — a dramatic decline that investors have watched unfold.

The business continues to navigate the current bear market and has just announced a major shake-up to its strategy. Here is 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:

• A board-approved U.S. dollar reserve that must equal at least 12 months of annual dividend payments and interest expenses
• Authorization of $1 billion each in common stock and preferred stock repurchases
• Authorization to sell up to $1.25 billion of Bitcoin — a significant departure from the company's previous never-sell-Bitcoin posture

Bitcoin continues to navigate a bear market, with its 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 rises sharply, Strategy's balance sheet swells, and its stock — offering investors leveraged exposure to the cryptocurrency — rises even more. However, in the current environment, the company is being forced to adapt.

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 company can now 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.

Navigating Uncharted Territory

It is easy to be critical when Bitcoin is down significantly. However, history suggests that troubling bear markets eventually evolve into raging bull markets. Bitcoin still possesses tremendous long-term potential.

The market has been highly 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 — the entire approach is unfamiliar.

In theory, raising constantly debased fiat currency to accumulate Bitcoin — a scarce asset — for the benefit of shareholders is a logical strategy. Since Strategy's upside is so massive, the company's primary challenge is managing downside risk and surviving bear markets. The new digital credit capital framework demonstrates that management is taking what it believes to be the appropriate actions.

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