Strategy has formally added Bitcoin sales to its capital management options, a notable break from the company’s long-standing image of never selling BTC. In a weekly research note published on July 3, 2026, Galaxy Research head Alex Thorn said the shift was aimed at easing dollar liquidity pressure that surfaced after the sharp decline in Strategy’s preferred stock, STRC.
STRC was originally structured to trade near its $100 par value, but the security came under heavy pressure as Bitcoin pulled back over the past two months. On June 26, STRC fell to a record low of $71.25. That drop intensified questions around how Strategy would continue funding preferred dividends as its dollar cash reserves tightened. The choices were narrow: sell BTC, issue more common stock and dilute MSTR holders, or suspend preferred dividend payments.
A new framework built around five tools
Chief executive Phong Le said Strategy would move away from one-way capital issuance and toward active capital management through a new “digital credit capital framework.” Under the plan, the board approved a cash reserve policy covering at least 12 months, lifting cash coverage to about 17 months. The annual dividend rate on STRC was also raised from 11.5% to 12%, effective July 1.
Strategy also authorized two separate buyback programs of up to $1 billion each, one for preferred securities and one for MSTR common stock. The most closely watched element was explicit language saying the company may occasionally sell BTC to obtain dollar liquidity. Markets responded quickly. On the day of the announcement, MSTR rose 12.6% to about $92.70, while STRC gained 12.2% to around $83.70.
Galaxy says the issue is liquidity, not solvency
Thorn argued that the central concern is not whether Strategy has enough assets. According to the report, the company holds 847,363 BTC, ranking second globally. The pressure point is dollar liquidity: whether Strategy can keep meeting dividend and financing obligations without creating fresh stress across its capital structure.
He described the inclusion of BTC sales as a practical release valve, even if it weakens the company’s previous no-sale narrative. In his view, a firm holding nearly 850,000 BTC should not allow a temporary cash-flow problem to become an existential threat. Still, Galaxy said the move does not resolve the deeper issue. Strategy faces $6.7 billion in convertible debt maturities across 2027 and 2028, which means the latest measures may buy time rather than remove the structural risk.
Alternatives to spot sales remain under discussion
Galaxy also pointed to another path that has received less attention: generating income without selling spot holdings. That could include lending a small, segregated portion of BTC under conservative terms, or using options strategies to harvest volatility. With the market still weak and no clear bottom identified in the report, keeping more strategic flexibility appears to be the main objective.