Strategy Unveils Bitcoin Sales Plan After MSTR Stock Plunges 75%
Updated
Updated · The Motley Fool · Jul 7
Strategy Unveils Bitcoin Sales Plan After MSTR Stock Plunges 75%
1 articles · Updated · The Motley Fool · Jul 7
Summary
June 29 marked a strategic shift for Strategy: it set a Bitcoin monetization framework that allows crypto sales to boost liquidity while keeping Bitcoin as its primary treasury reserve asset.
The company said proceeds could fund a U.S. dollar reserve, cover dividends or interest expense, or support repurchases of digital credit securities and common stock.
That move goes well beyond Strategy's earlier sale of just 32 Bitcoins, which management had framed as a limited step to "inoculate the market."
Risk to shareholders remains high: Strategy posted $12.8 billion in trailing-12-month losses on $490 million of revenue, while its stock has fallen 75% over the past year.
Bitcoin's own 28% decline this year still dominates the outlook, suggesting any asset sales may help liquidity more than they change Strategy's core exposure.