For years, Michael Saylor’s company was the poster child for corporate Bitcoin maximalism. Buy Bitcoin. Hold Bitcoin. Buy more Bitcoin. Repeat until the heat death of the universe.
That narrative just took a significant hit. Bitcoin dropped more than 3% to approximately $58,000 after Strategy Inc, formerly MicroStrategy, unveiled a new “Digital Credit Capital Framework” that authorizes up to $1.25 billion in Bitcoin sales.
What Strategy actually announced
The framework introduces a Bitcoin monetization program that gives Strategy the flexibility to sell up to $1.25 billion worth of its holdings. Alongside that, the company authorized up to $2 billion in repurchases of digital credit securities and common stock.
Strategy also bumped the dividend on its STRC preferred shares from 11.5% to 12%. In English: the company needs more cash to service its preferred stock obligations, and it’s willing to sell some Bitcoin to get it.
