Key Takeaways:
Michael Saylor rejected claims that Strategy had approved a new $5 billion bitcoin sale plan, identifying the authorization as an existing capital-management tool announced June 29.
"We have never had a 'never sell' policy. The program does not require any BTC sale, and we expect to remain a net buyer of Bitcoin over time," Saylor, executive chairman of Strategy Inc. (Nasdaq: MSTR), said in an X post on Aug. 1.
A July 6 filing with the U.S. Securities and Exchange Commission recorded 3,588 bitcoin sold for $216 million between June 29 and July 5, following Strategy's first bitcoin sale since 2022 of 32 BTC to help fund preferred-stock dividend payments. The company later issued $263.5 million in common stock without purchasing additional bitcoin, opting instead to increase cash reserves and liquidity.
Under the Digital Credit Capital Framework, management retains $1.25 billion in unused reserve-building capacity and may direct bitcoin sale proceeds toward dividends, interest, repurchases, taxes, fees, and transaction expenses. The framework has no fixed expiration date, and management may modify, suspend, or terminate it as market conditions, liquidity requirements, and corporate priorities change.
Strategy currently holds 843,775 BTC purchased for $63.69 billion, averaging $75,476 per coin. The company reported an $8.22 billion net loss for Q2 2026, driven by an $8.32 billion bitcoin writedown, with revenue of $122 million against estimates of $124.48 million and EPS of -$24.45 versus $3.07 expected.
The clarification follows a viral social media post that presented the company's existing capital-management framework as a fresh decision, prompting concern about potential selling pressure on bitcoin. Saylor noted the program was announced 31 days before the company's second-quarter results, not after posting a loss.
Strategy has paused its conventional weekly bitcoin purchases for five consecutive weeks, focusing instead on building its USD reserve and buying back STRC stock. Polymarket data shows only a 21 percent chance the company announces another bitcoin purchase by Monday, and a 10 percent chance it reaches 1 million BTC by year-end.
The company's preferred-stock and interest obligations run about $1.76 billion annually, according to figures reported by The Block. Strategy had built its cash reserve to $3.75 billion by late July, after raising fresh cash and pausing new bitcoin purchases.
Market observers remain divided over the framework's shareholder impact. Supporters view it as a way to preserve liquidity and meet obligations without hurried bitcoin disposals, while critics warn that supporting STRC near its $100 target could place added costs on common shareholders through higher dividends or further asset sales.
Any sale outside the framework's approved purposes or established limits would require additional authorization from the company's board.
This article is for informational purposes only and does not constitute investment advice.
