Strategy Sets Stage for $5B in Bitcoin Sales Under New Programme

Strategy has opened the door to potentially selling around $5 billion worth of Bitcoin under its balance-sheet programme. The programme, known as the BTC Monetization Program, covers cash reserves, preferred dividends, debt interest, and securities repurchases. According to Strategy, this could involve selling up to $1.25 billion from its USD reserve, approximately $1.76 billion in current annual dividend and interest obligations, and as much as $2 billion across common and preferred-stock repurchase programmes.

The company's USD reserve reached $3.75 billion by July 26, providing more than 2.1 years of coverage at the current obligation rate. Strategy maintains a minimum target equal to one year of preferred dividends and debt interest unless its board authorizes a lower balance. The programme has no expiration date and does not require Strategy to sell any specific amount.

Strategy can now use sales from the BTC Monetization Program to replenish cash used for dividends and interest or finance buybacks when management considers them more attractive than issuing additional MSTR or preferred shares. In the second quarter, Strategy sold 3,620 BTC for $218.4 million, producing a realized loss of $203 million.