Strategy authorizes up to $1.25 billion Bitcoin sales

Strategy, the corporate Bitcoin holding company led by Michael Saylor, has authorized the sale of up to $1.25 billion worth of its Bitcoin holdings, marking a significant shift from its long-standing "never sell" ethos. The move, announced this week as part of a new capital management framework, is designed to fund shareholder dividends, bolster cash reserves, and repurchase stock while the company says it aims to preserve its long-term Bitcoin strategy.

The new Digital Credit Capital Framework raises the annual dividend on Strategy's STRC preferred stock from 11.5% to 12% and establishes a formal Bitcoin monetization program. The company also reported that its dedicated cash reserve has grown to $2.55 billion, which it says is sufficient to cover roughly 17 months of preferred dividend and interest payments. This structured approach to liquidity follows the company's disclosure last month that it sold 32 Bitcoin, its first-ever sale. Strategy's total Bitcoin holdings remain unchanged at 847,363 BTC.

Analysts view the framework as a defensive maneuver to address balance sheet pressures, particularly after the company's preferred stock fell sharply in late June. While the...