Strategy, the largest corporate holder of bitcoin, said on June 29 it will sell some of its bitcoin to fund share buybacks and dividend payments, a sharp departure from the never-sell stance that defined the Michael Saylor-led company for five years. The board authorized up to $1.25 billion in bitcoin sales alongside $2 billion in repurchase programs, split evenly between common stock and preferred securities. The announcement, packaged as a new Digital Credit Capital Framework, came days after the company’s market value fell below the worth of its bitcoin for the first time. MSTR shares rose nearly 7% in pre-market trading on the news, according to CoinDesk.
The shift matters because Strategy long traded at a steep premium to its holdings, a gap measured by mNAV. mNAV, or multiple of net asset value, is the ratio between a company’s market value and the market value of the assets it holds. When that figure fell below 1 this week, investors were effectively saying the company was worth less than the 847,363 bitcoin on its balance sheet.
Key takeaways
- Strategy’s board approved selling up to $1.25 billion of bitcoin to fund dividends, interest, and reserves.
- The company authorized $2 billion in buybacks: $1 billion in common stock and $1 billion in preferred securities.
- The move follows Strategy’s mNAV falling below 1 for the first time, meaning its shares traded below the value of its 847,363 bitcoin.
- Strategy raised its USD reserve to $2.55 billion and lifted its Stretch preferred dividend to 12%, effective July 1.
Published: June 30, 2026, 09:00 UTC
What Strategy announced
The plan centers on a bitcoin monetization program that lets Strategy sell coins “from time to time” for defined purposes: building its cash reserve, covering preferred-stock dividends and interest, or buying back its own securities. The board capped sales at $1.25 billion for now.
On the buyback side, Strategy authorized $1 billion in repurchases of its common stock and $1 billion of its preferred securities, the instruments it markets as Digital Credit Securities. The company also raised its USD reserve to $2.55 billion as of June 28, with a board policy requiring at least 12 months of coverage for preferred dividends and interest. It increased the dividend on its Variable Rate Series A Perpetual Stretch Preferred Stock to 12%, effective for record dates beginning July 1, with monthly reviews aimed at keeping the security trading near its $100 stated value. The terms were disclosed in an 8-K filing with the SEC.
Why it matters
For five years, Strategy’s pitch was simple: raise capital, buy bitcoin, never sell. That model worked while the stock traded well above the value of its holdings, letting the company issue shares and debt at a premium and convert the proceeds into more bitcoin. The premium has now vanished. With mNAV below 1, issuing new stock to buy bitcoin would dilute existing shareholders without adding proportional value.
Selling bitcoin to buy back stock inverts the machine. The company paused its bitcoin purchases last week even after raising $1.15 billion through an MSTR share sale, a signal that the old playbook had stalled. The new framework gives Strategy a way to defend its share price and meet its dividend obligations without leaning on a premium that no longer exists.
The risk for bitcoin holders
Strategy’s 847,363 bitcoin represent roughly 4% of the total supply that will ever exist, so any sustained selling carries weight for the wider market. The company framed the $1.25 billion cap as a liquidity tool rather than an exit, and at recent prices that figure equals a small fraction of its stack. Even so, the precedent unsettles a market already under pressure from seven straight weeks of spot bitcoin ETF outflows and bitcoin trading near $60,000.
The reaction in Strategy’s own securities was calmer than feared. MSTR and the battered STRC preferred shares both recovered after a brutal week, suggesting investors read the framework as a stabilizing move rather than a fire sale.
What comes next
The immediate test is whether buybacks can lift mNAV back above 1 and restore Strategy’s ability to raise capital at a premium. If the discount persists, the company may lean harder on bitcoin sales to fund its preferred-dividend stack, which now carries higher payout rates. Watch the monthly dividend reviews and any disclosure of actual bitcoin sales in upcoming filings, the clearest signals of how far Saylor is willing to move from buy-and-hold.
Frequently asked questions
Is Strategy selling all its bitcoin?
No. The board authorized up to $1.25 billion in sales for specific purposes such as funding dividends and buybacks. That is a small share of its 847,363 bitcoin, and the company describes it as a liquidity tool, not an exit from its bitcoin strategy.
What is mNAV and why does it matter here?
mNAV is the ratio of a company’s market value to the market value of its assets. Strategy’s mNAV fell below 1, meaning the market valued the firm at less than its bitcoin holdings, which removed the premium that funded its years of buying.
Why is Strategy buying back its own shares?
Buybacks can support the stock price and signal that management sees value below the company’s bitcoin worth. Strategy authorized $2 billion in repurchases across common stock and preferred securities to address the discount.
