Strategy authorizes sale of up to 1.25 billion dollars in bitcoin

Strategy, the world's biggest corporate bitcoin holder, announced a new financial framework on 29 June that allows the company to sell up to $1.25 billion worth of bitcoin. The money raised would go into a reserve fund to pay dividends on preferred shares, cover interest costs, and buy back stock. Any sale would need board approval and is not required to happen automatically.

The announcement ended founder Michael Saylor's long-standing policy of never selling bitcoin. Before this, the company had only sold bitcoin once, in December 2022. At current prices, $1.25 billion equals roughly 2.5 percent of Strategy's total holdings of around 847,000 bitcoin. The bitcoin price dropped 2.2 percent in the day after the news. The framework also raised the dividend on Strategy's STRC security from 11.5 to 12 percent.