Strategy may sell up to $1.25 billion of Bitcoin, shares jump 6%

Strategy announced it could sell as much as $1.25 billion worth of Bitcoin, a move that lifted MSTR shares about 6% in pre‑market trading and nudged Bitcoin above $60,000 after a recent dip below $59,000 [1][2].

Capital restructuring and the BTC sell‑off

In a June 29 filing, Strategy (Nasdaq: MSTR) disclosed a “Digital Credit Capital Framework” that includes a $1.25 bn Bitcoin monetization program to fund dividend and debt obligations [2]. The company already holds a $2.55 bn cash reserve, enough to cover 17.4 months of its preferred‑stock dividend and interest commitments, with a board‑mandated floor of 12 months [2]. By adding the BTC sale capacity, total liquidity rises to $3.80 bn, or roughly 25.9 months of coverage [2].

The announcement came as Bitcoin was recovering from a 21‑month low under $59,000, a level it hit last week before modestly rebounding [1]. The news pushed the cryptocurrency back above $60,000, a breakout that coincided with the stock’s 6% pre‑market gain [2].

Market impact and balance‑sheet implications

MSTR’s dual‑track approach—boosting cash while authorizing a sizable BTC liquidation—aims to shore up its balance sheet amid heightened scrutiny of its Bitcoin‑backed funding model [1]. The company’s preferred‑stock dividend obligation sits at roughly $1.76 bn annually; the combined cash and BTC capacity now exceeds that liability by more than double [2]. Analysts note that the ability to tap Bitcoin for liquidity adds a non‑cash lever, but also signals that the firm may need to draw down its crypto holdings if market conditions worsen.

What to watch

• Bitcoin price at $58,000 – $60,000: a breach below $58k could trigger further BTC sales.
• MSTR’s preferred‑stock dividend dates (starting July 1, 2026) and any board approvals for BTC drawdowns.
• Upcoming SEC filings or shareholder votes that could adjust the $1.25 bn sell‑off ceiling.

The plan underscores Strategy’s shift from a pure “bitcoin treasury” model to a hybrid liquidity strategy, raising questions about how much of its crypto reserve will ultimately be liquidated and how that will affect both the stock and Bitcoin’s price dynamics.