Strategy (MSTR) Becomes a Bitcoin Treasury Company

Strategy, formerly MicroStrategy, sold 32 BTC in late May 2026, reversing a five-year pledge not to sell its Bitcoin reserves. The company reported the sale averaged about $77,135 per coin and raised roughly $2.5 million. Executives said the proceeds would fund preferred-stock distributions and improve financial flexibility.

Founded in 1989 as a business intelligence software firm, the company rebranded to Strategy in early 2025 after making Bitcoin its primary treasury asset. The initial corporate purchases began in 2020. Strategy has financed many of its Bitcoin acquisitions through convertible notes and a series of preferred-stock offerings, including a class marketed as Strike (STRK).

As of June 2026, Strategy holds roughly 843,000 BTC, making it the largest public-company Bitcoin treasury. The firm reports significant unrealized losses versus its average purchase price of about $75,653 per Bitcoin and recorded a net loss of $12.54 billion in the first quarter of 2026, driven mainly by mark-to-market declines in Bitcoin value.

Investors and analysts have pointed to risks in the company’s funding model, which relies on short-term convertible debt and preferred securities to raise cash for further Bitcoin purchases. Strategy’s market capitalization relative to its net asset value by Bitcoin, known as mNAV, reached above 3x in late 2024 and fell below 1x as Bitcoin prices declined, coinciding with a large pullback in the company’s share price.

To add liquidity, Strategy established a USD cash reserve in December 2025, initially funded with $1.44 billion and later increased. In May 2026 the company used about 61% of that reserve to repurchase $1.5 billion of convertible notes, leaving roughly $871 million allocated to service dividends and debt.

On a first-quarter 2026 earnings call, CEO Phong Le told investors, “We will sell Bitcoin when it’s advantageous to the company.” Co-founder and chair Michael Saylor has said the firm aims to “never be a net seller” while acknowledging occasional sales could support market functioning or meet corporate needs.

On June 29, 2026, Strategy’s board approved a Digital Credit Capital Framework and a related BTC Monetization Program authorizing up to $1.25 billion of Bitcoin sales to replenish cash reserves, support preferred-stock distributions, repurchase securities or strengthen its Digital Credit business. In a filing, CFO Andrew Kang described the program as giving Strategy flexibility to use part of its BTC reserve to fund dividend payments, interest expense, accretive repurchases and to support Digital Credit operations when monetization is more advantageous than issuing common equity.

Company executives say they plan to continue acquiring Bitcoin while using occasional sales or monetization to manage liquidity and obligations. Critics have raised concerns about Bitcoin volatility and the structural risk that prolonged trading of debt or preferred securities below par could pressure the firm to issue equity or sell Bitcoin to meet obligations. Management has pointed to its cash buffers and revised policies as measures intended to reduce the likelihood of forced sales.