Strategy Inc., formerly MicroStrategy, has formally abandoned its four-year pledge to never sell Bitcoin. A Digital Credit Capital Framework disclosed in an SEC filing late last week permits the company to sell up to $1.25 billion worth of BTC to shore up cash reserves, cover preferred dividends and fund share buybacks.
The reversal caps a brutal stretch for the company once synonymous with corporate Bitcoin conviction. MSTR shares fell more than 5% in premarket trading after the filing's specifics landed, wiping out much of a 12%-plus rally from the prior session, when the capital framework was first unveiled without sale mechanics attached.
What happened
The new framework, part of a broader package covering Strategy's USD Reserve Policy, STRC dividend policy and buyback authorizations, formalizes what had previously been described as an 'ad-hoc' Bitcoin sale in May. Executive Chairman Michael Saylor spent nearly four years insisting Strategy would never sell a single coin from its treasury. That pledge is now officially retired.
CEO Phong Le drew a line between the new policy and a straightforward liquidation, telling investors Bitcoin would only be sold when doing so is 'accretive to bitcoin per share' — meaning any sale must be paired with actions that increase per-share Bitcoin exposure for common shareholders, such as retiring preferred stock or repurchasing MSTR shares. Saylor, in a post on X, said the goal is to make the company's STRC preferred instrument 'the best credit instrument in the world,' but did not directly address the Bitcoin sale itself.
Why it matters
Strategy holds roughly 840,000 Bitcoin, by far the largest corporate treasury of the asset. The $1.25 billion sale ceiling represents a small fraction of that stash, but the precedent is what has rattled the market: a company built on the premise of never selling has now given itself explicit, board-authorized permission to do so on a recurring basis whenever its preferred-stock obligations demand it.