Key Points
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As part of a revamped capital markets playbook, Strategy can now sell up to $1.25 billion worth of Bitcoin.
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Growing Bitcoin per share is the company’s top priority as it pertains to its equity investors.
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What Strategy is doing is completely unfamiliar, but the stock has significant upside if the business can survive bear markets.
- 10 stocks we like better than Strategy ›
In November 2024, Strategy (NASDAQ: MSTR) shares reached their all-time high price of $473.83. As of July 1, the Bitcoin (CRYPTO: BTC) treasury company trades at just $93.39 per share. Investors have witnessed the cryptocurrency stock‘s precipitous fall.
The business continues to navigate the current bear market. It just announced a major shake-up to its strategy. Here’s what investors need to know.
CEO Michael Saylor’s strategy is changing
On June 29, Michael Saylor’s Strategy announced a new digital credit capital framework. It set up a board-approved U.S. dollar reserve that must equal at least 12 months of annual dividend payments and interest expenses. The company also authorized $1 billion each of common stock and preferred stock repurchases.
The biggest surprise is that Strategy has shifted its posture from a never-sell-Bitcoin attitude to now setting up authorization to sell up to $1.25 billion of the top cryptocurrency.
Bitcoin continues to navigate a bear market, with the digital asset’s price trading more than 50% off its peak. At the same time, this soft market sentiment has negatively impacted Strategy shares, which were down 43% in the first six months of 2026.
When Bitcoin’s price is rocketing higher, everything is fine. Strategy’s balance sheet balloons in value. And because the company’s stock provides investors with levered exposure to the crypto, its price rises even more.
But in the current market environment, Strategy is being forced to make adjustments to its game plan. Growing Bitcoin per share is still the ultimate goal. And being able to make dividend payments on its STRC perpetual preferred equity product is also a priority.
Depending on where Strategy shares, its preferred equity stock, or Bitcoin are trading, the business can engage in whatever capital market transactions are accretive to its investors, whether this entails buying or selling. The company simply expanded its playbook to respond quickly to what the market is doing. Investors would reward any business that adapted like this.
Navigating uncharted territory
It’s easy to be critical when Bitcoin is down so much. But history says that a troubling bear market evolves into a raging bull market. Bitcoin still possesses tremendous long-term potential.
The market is also extremely judgmental of what Strategy has been doing. I believe this negative perception comes from the simple fact that it has never seen a business do this before. All of this is entirely unfamiliar to nearly the entire investment community.
But in theory, raising constantly debased fiat currency to accumulate Bitcoin, a scarce asset, to the benefit of your shareholders is a logical strategy. Since Strategy’s upside is so massive, all it needs to do is manage the downside and survive the bear markets. The new digital credit capital framework shows that the management team is doing what it believes is best.
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Neil Patel has positions in Strategy. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
