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Strategy (MSTR) plans to liquidate up to $1.25 bn of BTC, boosting its cash reserve and sending the stock 6% higher while Bitcoin briefly tops $60,000.
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].
| At a glance | |
|---|---|
| BTC sale authorization | Up to $1.25 bn |
| Bitcoin price reaction | > $60,000 (up from sub‑$59k) |
| MSTR share move | +6% pre‑market |
| Cash reserve | $2.55 bn (≈ 17.4 months dividend coverage) |
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].
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.
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.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 29, 2026 · How we report
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