In the latest crypto news, Strategy has authorized the sale of up to $1.25 billion worth of Bitcoin under a newly established Bitcoin Monetization Program. The initiative forms part of the company’s new Digital Credit Capital Framework to strengthen liquidity, expand its USD Reserve, and support shareholder returns. While the announcement sparked speculation that Executive Chairman Michael Saylor is turning bearish on Bitcoin, Strategy emphasized that the program will preserve its long-term Bitcoin exposure while giving the company greater financial flexibility.
Strategy Introduces Bitcoin Monetization Program
Under the new framework, Strategy may sell up to $1.25 billion of its Bitcoin holdings to help build its USD Reserve. The proceeds may also be used to fund dividend payments, cover interest expenses, and finance share repurchases and buybacks of the company’s Digital Credit securities.
The announcement gained widespread attention, especially as Bitcoin dipped below $59,000 over the weekend. Thus, many market watchers speculated that the firm had abandoned its Bitcoin accumulation strategy and is cutting its losses. Nevertheless, the announcement does not mean Strategy is immediately selling Bitcoin. Instead, it authorizes the company to monetize a limited portion of its holdings when management believes doing so supports its broader capital strategy.
Strategy presented the move as a treasury management initiative rather than a change in its long-term investment thesis. The company reiterated that one of its primary objectives is to preserve long-term Bitcoin exposure while improving balance sheet flexibility.
The announcement also follows months of continued Bitcoin accumulation. CoinRemark recently reported that Strategy purchased 520 BTC for $35 million, increasing its Bitcoin treasury to 847,363 BTC, the largest corporate Bitcoin reserve in the world.
USD Reserve Expands to $2.55 Billion
Alongside the monetization program, Strategy announced that its USD Reserve has grown to $2.55 billion. According to the company, that amount now provides approximately 17.4 months of dividend coverage for its Digital Credit securities.
If Strategy fully utilizes the additional $1.25 billion monetization capacity to strengthen the reserve, total dividend coverage would increase to $3.80 billion, representing approximately 25.9 months. The company said the USD Reserve will only be used to fund dividend payments and interest expenses, and it intends to maintain a minimum reserve equal to 12 months of coverage.
Strategy also increased the dividend rate for its STRC Digital Credit security by 50 basis points, raising it to 12.00% beginning with the July 2026 record date. The company said it will continue to review the dividend rate each month and maintains a long-term objective of keeping STRC trading between $99 and $100.
Strategy Continues Long-Term Bitcoin Strategy
Despite authorizing potential Bitcoin sales, Strategy remains firmly committed to Bitcoin as its primary treasury reserve asset. Even if the company were to use the full $1.25 billion authorization, the sale would represent only a small portion of its holdings, which are currently worth tens of billions of dollars.
The company also announced new $1 billion repurchase programs for both its Digital Credit securities and MSTR shares. Those buyback authorizations will give Strategy greater flexibility during periods of market volatility without relying on its USD Reserve.
Together, the measures could strengthen Strategy’s financial position while maintaining one of the largest Bitcoin treasuries in the corporate world.
The CoinRemark Team
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