Strategy, the company formerly known as MicroStrategy, plans to sell up to $5 billion in Bitcoin — a sharp jump from the $1.25 billion it previously signaled. The firm has also gone five straight weeks without buying any Bitcoin, its longest acquisition pause in years. CEO Phong Le laid out a new corporate objective: get the STRC preferred stock trading at $99 to $100 over time.
The $5 billion sell-off
Strategy currently holds 843,775 BTC. The company says it needs the cash for a few things: building a USD reserve of up to $1.25 billion, covering dividend and interest payments that run $1.76 billion per year, and funding up to $2 billion in common and preferred stock repurchases. That's a lot of selling. The plan is a major departure from the company's long-held strategy of accumulating Bitcoin and never letting go.
A pause in accumulation
Five weeks without a purchase. That's the longest dry spell since Strategy started stacking Bitcoin six years ago. The timing isn't great for Bitcoin bulls who saw the company as a corporate proxy for the asset. But the company's focus has clearly shifted. Le's comments suggest the priority is now the preferred stock price and the balance sheet, not adding more coins.
Preferred stock recovery
STRC preferred stock had fallen below $75 before the company announced its new direction. It's since recovered to nearly $90. Analyst Peter Schiff said common shareholders are 'screwed' under the new strategy. Crypto Kaleo went further, calling Strategy no longer a Bitcoin company but a credit company with an 'atrocious' credit rating. Not everyone is that bearish — some investors see Le's $99-$100 target as a tactical short-term goal, not a permanent pivot away from Bitcoin.
Strategy will start selling Bitcoin to fund the reserve and the buybacks. The market will be watching how much it actually unloads and how fast. The preferred stock target is a concrete number — $99 to $100 — but getting there depends on execution. For now, the company that once defined corporate Bitcoin accumulation is in a very different phase.
