Strategy, the company formerly known as MicroStrategy and the largest publicly traded corporate holder of Bitcoin, just did something it swore it would never do. It approved selling Bitcoin.

The board authorized a new “Digital Credit Capital Framework” on June 29 that allows the company to sell up to $1.25 billion worth of BTC. The goal is to boost its USD reserves from $2.55 billion to roughly $3.8 billion, giving it enough runway to cover preferred dividends and interest obligations for about 25.9 months.

The numbers behind the pivot

Strategy currently holds 847,363 BTC. The authorized sales represent approximately 1.5% of that stash, which sounds modest until you remember that 1.5% equals $1.25 billion.

The company’s annual dividend and interest obligations total approximately $1.76 billion. Under its existing $2.55 billion reserves, that translates to roughly 17.4 months of coverage.

Strategy already started selling before the formal announcement. In late May 2026, the company offloaded 32 BTC for $2.5 million, averaging about $77,135 per coin.

Beyond shoring up reserves, the framework also enables up to $2 billion in buybacks of preferred securities and common stock, with roughly $1 billion targeted specifically at preferred securities.

Why the ‘never sell’ era is over

Executive Chairman Michael Saylor built his entire post-2020 brand on one message: buy Bitcoin, hold Bitcoin, never sell Bitcoin. The company’s stock became a leveraged proxy for BTC exposure, attracting investors who wanted amplified upside without directly holding crypto.

With $1.76 billion in annual obligations and reserves providing less than 18 months of coverage, the board faced a straightforward choice: sell some Bitcoin now on their own terms, or potentially be forced to sell later under worse conditions.

What this means for investors

The initial market response was positive, with MSTR shares moving up in pre-market trading.

Moving from 17.4 months to 25.9 months of runway is meaningful, but it still depends on Strategy not needing to increase its obligations further. If Bitcoin drops significantly and the company needs to post additional collateral or faces margin pressures on its leveraged positions, that 25.9-month cushion could shrink faster than expected.

The $2 billion buyback authorization includes roughly $1 billion targeted at preferred securities. Buying back preferred securities at a discount could be accretive for common shareholders, but funding buybacks with Bitcoin sales means the company is trading BTC for reduced share count.

For crypto markets specifically, the 1.5% being sold is unlikely to move the needle in terms of direct selling pressure.