Strategy Abandons 'Never Sell Bitcoin' Stance, Sells $432M Worth of BTC
Strategy, formerly known as MicroStrategy, is a company that has undergone significant changes in its business model. Founded in 1989 by Michael Saylor, Strategy initially made its mark in software, providing business intelligence solutions to help companies analyze data for better decision-making. After going public on the NASDAQ in 1998, the company experienced a brief spike in 2000 before trading in a tight range for nearly two decades.
It wasn't until 2020 that Strategy's fortunes changed with the adoption of Bitcoin as its primary treasury reserve asset. Concerned about inflation and economic uncertainty, Saylor spearheaded a $250 million purchase of BTC, which he believed would serve as a dependable store of value and an attractive investment asset. This marked a significant shift in the company's strategy, which has since become one of the most prominent institutional investors in Bitcoin.
As Strategy continued to buy up BTC, it also began to issue debt through convertible notes, using the proceeds to purchase more cryptocurrency. By December 2024, Saylor likened this process to Manhattan real estate development, where additional debt is issued to fund further growth. However, the company's mNAV (multiple to net asset value) metric revealed a concerning trend: Strategy was valuing its shares at three times the value of its BTC holdings.
To address these concerns, Strategy overhauled its investor metrics in July 2026, introducing a new yardstick called 'net Bitcoin per share.' This measure takes into account preferred stock and out-of-the-money convertible debt, providing a more accurate picture of the company's true value. As a result, Strategy's mNAV dropped below parity, but the company's shares regained their footing.
Despite this, Strategy faced another challenge in 2026 when its preferred stock offerings, including STRC, began to trade at a discount. To address this issue, the company established a cash reserve and introduced a new USD Cash account, which can be used for general treasury purposes, including buying more BTC.
But Strategy's biggest surprise came in May 2026 when it abandoned its long-held 'never sell Bitcoin' stance. CEO Phong Le announced that the company would consider selling BTC if it improved net Bitcoin-per-share or helped manage debt and dividend obligations. The following months saw Strategy sell a significant portion of its BTC holdings, with a total of 6,948 coins sold for roughly $432.5 million since May.