Strategy Inc. Authorizes $1.25B Bitcoin Sales and $2B in Buybacks
STRC•Strategy Inc. will sell up to $1.25 billion of Bitcoin to bolster its $2.55 billion U.S. dollar reserve and fund preferred dividends, interest payments, and other obligations. It also authorized two $1 billion buyback programs for Class A common stock and Digital Credit Securities.
1. Capital Structure Pressures
A recent crypto downturn pushed Bitcoin below $59,000 and drove Strategy’s market net asset value below 1, undermining the premium on its treasury-centric model and exposing funding strains tied to preferred dividends and debt interest obligations.
2. Bitcoin Sale Authorization
Strategy Inc. filed to sell up to $1.25 billion of its Bitcoin holdings, directing proceeds toward its $2.55 billion U.S. dollar reserve, preferred share dividends, interest payments and other corporate requirements, with execution dependent on liquidity, tax and market conditions.
3. Dual Buyback Programs
The company simultaneously approved two separate $1 billion buyback authorizations—one for Class A common stock and one for Digital Credit Securities, including preferred shares—providing flexibility to repurchase equity or rebuild cash based on evolving market dynamics.
