Strategy Chooses Stock Over Bitcoin in Unusual Move

Strategy, a well-known player in the cryptocurrency space, has made some unexpected moves recently. In a filing with the SEC, it was revealed that the company sold $334 million worth of MSTR common shares last week. This move is notable because Strategy had previously adopted a Digital Credit Capital Framework, which restricts its USD reserve to covering preferred stock dividends and interest payments.

The framework also authorized a $1 billion repurchase program for digital credit securities prioritizing STRC, and expanded the BTC Monetization Program to allow up to $5 billion in bitcoin sales. However, Strategy didn't sell any Bitcoin last week - instead, it chose to sell stock.

This development comes on the heels of a run where Strategy had been selling Bitcoin to fund its dividend obligations. In June, the company sold 32 BTC for $2.5 million, and by July, it was selling 3,588 BTC for around $216 million to keep its preferred stock machine funded.

The mechanism behind this is clear: when Bitcoin falls far enough to compress dividend coverage, Strategy sells Bitcoin to fund its obligations. This time, however, the company chose to sell MSTR shares instead, alongside adding $250 million directly to its reserve.