Strategy, the Bitcoin treasury company formerly known as MicroStrategy, made a sharp turn in its approach to the cryptocurrency it built its identity around. On June 29, the company announced a new digital credit capital framework that, for the first time, authorizes the sale of up to $1.25 billion worth of Bitcoin. That is a significant break from the never-sell posture that had defined CEO Michael Saylor's public stance for years.
According to a report by Yahoo Finance, the announcement came as Strategy shares sit far below their peak. In November 2024, the stock hit an all-time high of $473.83. As of July 1, 2026, shares trade at $93.39, a drop of roughly 80% from that high. The stock was down 43% in just the first six months of 2026 alone.
The new framework includes several moving parts. Strategy set up a board-approved U.S. dollar reserve that must be kept at a level equal to at least 12 months of annual dividend payments and interest expenses. The company also authorized $1 billion each in repurchases of common stock and preferred stock. The Bitcoin sale authorization sits on top of those moves.
The shift reflects pressure that has built up during a prolonged crypto downturn. Bitcoin's price has fallen more than 50% from its peak, and that drop has weighed heavily on Strategy's balance sheet. The company's stock had provided investors with leveraged exposure to Bitcoin, meaning it rose faster than the cryptocurrency during rallies and fell harder during declines. That dynamic has worked against the company through the current bear market.
The company's priorities under the new framework are clear. Growing Bitcoin per share remains the stated ultimate goal. Making dividend payments on its STRC perpetual preferred equity product is also listed as a priority. The new authorization gives management room to buy or sell depending on where Strategy shares, its preferred equity, or Bitcoin are trading at any given time.
The report describes the move as an expansion of the company's playbook rather than a retreat from its core thesis. Management can now engage in whatever capital market transactions it views as adding value to investors, whether that involves buying more Bitcoin or selling some of it. The flexibility is the point.
Strategy has accumulated a large Bitcoin position over several years through stock and debt offerings. That accumulation strategy attracted a devoted following among retail investors who wanted indirect exposure to cryptocurrency through a publicly traded stock. The authorization to sell Bitcoin does not mean the company will sell, but the option now exists in a way it formally did not before.
Bitcoin's long-term trajectory remains the central variable. If prices recover and a new bull market develops, the new framework gives Strategy room to capitalize. If prices stay depressed, the dollar reserve and repurchase authorizations give it tools to manage obligations and support its stock price. The next test will come when the company reports its next quarterly results and discloses whether it has used any of the new authorizations.
