MSTR Breaks Its 'Never Sell Bitcoin' Vow, Authorizes Up to $1.25B in BTC Sales

Strategy (MSTR) announced a major strategic shift on June 29, authorizing the sale of up to $1.25 billion in bitcoin for the first time — breaking CEO Michael Saylor’s long-standing “never sell” pledge. As of the July 5 weekend close, MSTR traded at $100.77, up 7.90% from the prior close of $93.39, with an intraday range of $97.57 to $104.11. The stock had fallen 43% in the first half of 2026, continuing a slide from an all-time high of $473.83 in November 2024.^{[Motley Fool]}

New Framework: First BTC Sale Authorization and Capital Reserve

Strategy unveiled a new plan on June 29 called the “Digital Credit Capital Framework.” Under the framework, the board approved a dollar reserve that must cover at least 12 months of annual dividend payments and interest expenses. The company also authorized $1 billion each in common and preferred stock buyback plans.^{[Motley Fool]}

The most striking change: Strategy shifted from a “never sell bitcoin” stance to authorizing the sale of up to $1.25 billion in bitcoin. This is the company’s first authorization to sell BTC since it began buying in August 2020. Motley Fool reported that the move marks a major strategic pivot for Michael Saylor.^{[Motley Fool]}

FinanceFeeds noted that Saylor had already broken his long-standing “never sell” pledge in May 2026, when the company conducted its first bitcoin liquidation — a sign of shifting operational flexibility.^{[FinanceFeeds]}

Holdings and Financials: Massive Losses and Dilution Pressure

Strategy remains the largest corporate bitcoin holder globally. As of end-June 2026, the company held 847,363 bitcoin, with a total acquisition cost of ~$64.1 billion and an average cost of ~$75,651 per coin — controlling more than 4% of bitcoin’s total supply.^{[FinanceFeeds]}

The sharp decline in bitcoin’s price has put enormous pressure on the company. Bitcoin has fallen more than 50% from its all-time high of $126,080 in October 2025, trading at ~$62,608 as of press time.^[CoinDesk] That contributed to Strategy reporting a $12.5 billion loss in Q1 2026.^{[FinanceFeeds]}

FinanceFeeds also highlighted severe shareholder dilution. Strategy’s Class A common shares outstanding grew from 76 million in mid-2020 to ~314 million by February 2026 — a 313% increase. No other large U.S. company has diluted shareholders at that rate. While the company uses a “BTC Yield” metric to measure per-share bitcoin growth, the dilution itself has been extreme.^{[FinanceFeeds]}

Market Reaction and Analyst Views

Despite the major strategic shift, MSTR closed the July 5 weekend at $100.77, up 7.90% from the prior close. Motley Fool analyst Bram Berkowitz argued that negative sentiment toward Strategy may stem from the fact that “the market has never seen a business do this before,” but that, in theory, using depreciating fiat currency to accumulate a scarce asset like bitcoin is a logical strategy for shareholders.^{[Motley Fool]}

FinanceFeeds reported that JPMorgan warned in July 2026 that Strategy’s concentrated buying could increase volatility, and that any forced liquidation could have a massive impact on bitcoin’s overall price dynamics.^{[FinanceFeeds]}

Meanwhile, Barstool Sports founder Dave Portnoy told FOX Business on July 5 that he plans to hold bitcoin down to zero, admitting he has repeatedly mistimed the market. “I bought at $100,000, and now I’m down millions,” Portnoy said. “Every time I sell, it moons; every time I buy, it tanks.”^[CoinDesk]

Industry Ripple Effects: Miners Pivot and Sell

The bitcoin bear market is rippling across the industry. Nasdaq-listed miner CleanSpark, after reporting a Q1 2026 net loss of $378.7 million, announced it would shift some power capacity from bitcoin mining to AI data centers. The stock has fallen ~28% over the past month, with short interest at ~44% of float.^{[Briefs Finance]}

Another Nasdaq-listed miner, Bitdeer, announced on July 4 that it had sold all 223.1 bitcoin mined this week. The company has been executing a “zero bitcoin holdings” strategy since February 2026, selling all mined BTC immediately.^[CoinNess]

Additionally, American Bitcoin recently executed a reverse stock split to avoid delisting.^{[Yahoo Finance]}

Motley Fool analysts believe Strategy’s new framework shows management is doing what it thinks is best — managing downside risk and weathering the bear market. With massive upside potential, they argue, Strategy simply needs to manage downside risk and survive.^{[Motley Fool]}

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