Strategy Officially Breaks its Never-sell Rule – Authorizes up to $1.25 Billion in Bitcoin Sales
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Written by
Simonas Brazionis - Updated 2026-06-29 23:46:19
Strategy, the company that built its entire identity around never selling Bitcoin, announced a Digital Credit Capital Framework on June 29, 2026, that formally authorizes selling Bitcoin for the first time. The board approved a Bitcoin Monetization Program allowing sales of up to $1.25 billion worth of BTC to build and replenish the company's USD reserve, service preferred dividends, and fund stock buybacks. MSTR shares jumped 6% and STRC preferred stock surged 10% on the announcement.
The framework also includes two separate $1 billion repurchase programs – one for Strategy's Digital Credit Securities and one for Class A common stock. The company raised the annual dividend on its STRC preferred shares to 12%, effective July 1. Strategy currently holds approximately 847,363 BTC purchased at an average cost of roughly $75.70 per coin, for a total outlay of $64.1 billion.
The company already broke the never-sell rule once before. It sold 32 BTC for approximately $2.5 million at the end of May 2026, disclosed in a regulatory filing that caught the market off-guard. Monday's framework is the formal acknowledgment that sales are now part of the playbook.
| Framework Component | Details |
|---|---|
| Bitcoin Monetization Program | Up to $1.25B in BTC sales authorized |
| Digital Credit Securities buyback | Up to $1.0B authorized |
| Class A common stock buyback | Up to $1.0B authorized |
| STRC dividend rate | Raised to 12% annually from July 1 |
| USD Reserve (as of June 28) | $2.55 billion (~17.4 months coverage |
| Total BTC holdings | 847,363 BTC |
| Average BTC purchase price | approx. $75.70 per coin |
| MSTR stock reaction | Up 6% on announcement |
| STRC preferred stock reaction | Up 10% on announcement |
Why Strategy is Doing This Now
The move is a direct response to market stress on Strategy's preferred securities. STRC had been trading below par in recent weeks, signaling that investors were worried about the company's ability to meet dividend obligations as Bitcoin sat well below Strategy's average purchase price.
The USD Reserve of $2.55 billion covers about 17.4 months of preferred dividends and interest. Adding the authorized $1.25 billion in potential Bitcoin sales extends that to roughly 25.9 months of coverage. The message to STRC holders is clear: the company can meet its obligations without selling, but it now has a formal mechanism to do so if needed.
CEO Phong Le stated the company would sell Bitcoin only when management determines it is advantageous. Executive Chairman Michael Saylor added that the framework strengthens Strategy's credit profile while maintaining Bitcoin as its primary treasury reserve asset. Neither the buyback nor the Bitcoin sales programs obligate the company to make transactions.
What This Means for the Bitcoin Market
Strategy holds roughly 4% of all Bitcoin that will ever exist. Any authorized sales program creates a theoretical overhang on the market, even if the company does not actually sell. That perception effect is real and adds to the existing pressure from ETF outflows.
The counterargument is that the framework actually reduces tail risk. A disorderly forced liquidation – the nightmare scenario for Bitcoin bears – is now less likely. Structured, board-approved sales are fundamentally different from a margin call. The market appears to agree: Bitcoin held above $60,000 after the announcement.
What to Watch
The July 1 STRC dividend is the first test of the new framework. If Strategy pays it from the USD reserve rather than Bitcoin sales, it signals confidence in cash coverage.
Weekly ATM equity sale data is the second signal to track. Strategy sold 12.7 million MSTR shares between June 22-28 for $1.1 billion, suggesting it prefers diluting stock over selling Bitcoin. Traders monitoring positions across the best crypto exchanges should watch whether STRC stabilizes above par following Monday's announcement – that would remove the most acute near-term pressure on the entire structure.
