Strategy Inc. (NASDAQ: $MSTR) has opened the door to Bitcoin (CRYPTO: $BTC) sales as the company moves to protect the capital structure built around its treasury.
The Michael Saylor-founded firm said it may sell up to $1.25 billion of Bitcoin from time to time, with proceeds directed toward its U.S. dollar reserve, preferred stock dividends, interest payments and other corporate obligations
The reserve now stands at about $2.55 billion, giving Strategy more flexibility at a moment when its Bitcoin-linked funding model is under pressure. Strategy also authorized two buyback programs, each up to $1 billion. One covers its Class A common stock, while the other covers Digital Credit Securities, including its preferred shares.
The setup gives management room to sell Bitcoin, repurchase securities or rebuild cash depending on market conditions. More From Cryptoprowl: The authorization marks a sharper turn for a company that became the public-market face of corporate Bitcoin accumulation. Strategy has spent years using equity, debt and preferred-stock issuance to expand its Bitcoin holdings, while investors valued the stock partly on the premium attached to that strategy.