Saylor says no new $5B MicroStrategy bitcoin sale

MicroStrategy executive chairman Michael Saylor rejected claims on Aug. 1 that the company had approved a new plan to sell up to $5 billion in bitcoin. He said the figure referred to a capital-management framework announced June 29 and not to a fresh decision to reduce holdings.

Saylor pushed back after a widely shared social media post described the June disclosure as a new authorization to sell. The company presented the program on June 29 as a Digital Credit Capital Framework, later called the BTC Monetization Program, which allows sales for specified corporate purposes but does not mandate liquidation.

A July 6 SEC filing shows how the program has been used: MicroStrategy sold 3,588 bitcoin for about $216 million between June 29 and July 5. That followed a separate sale of 32 bitcoin, the company’s first since 2022, which was used to help fund preferred-stock dividend payments. The company also issued $263.5 million in common stock and increased cash reserves without buying additional bitcoin.

Under the framework, management keeps about $1.25 billion of unused capacity for building reserves. The company may use any proceeds from bitcoin sales to pay dividends, interest, share repurchases, taxes, fees and transaction costs. The framework has no set expiration; the board may alter, suspend or terminate it. Any bitcoin sales outside the program’s stated purposes or limits would need separate board approval.

Saylor wrote that MicroStrategy has not adopted a “never sell” policy and that the program “requires no bitcoin sales.” He noted the framework was disclosed 31 days before the company reported second-quarter results, rather than in response to a quarterly loss, and reiterated the expectation that the company will remain a net buyer of bitcoin over time.

Investors and analysts remain split on the framework’s effects. Supporters say the structure gives management options to raise liquidity without rushed disposals during market stress. Critics say using bitcoin to support preferred securities or to defend price targets could increase costs for common shareholders through higher dividends or additional asset sales.