Morning Minute: A Change of Strategy
Strategy changed its Bitcoin treasury model, ending its strict “never sell” stance. It adopted a “Digital Credit Capital Framework” that allows up to $1.25 billion in Bitcoin sales to raise cash for dividends, interest, and other obligations, plus up to $2 billion in buybacks for common and preferred shares. The shift is meant to actively manage its capital structure rather than rely mainly on issuing stock to buy more BTC. Markets reacted positively: MSTR rose about 13%, STRC about 12%, and Bitcoin briefly moved back above $60,000. The move strengthens Strategy’s liquidity and credit profile, with cash reserves and dividend coverage improving. It also reduces near-term risk of a forced blowup, but it marks a major pivot because Strategy can now be a Bitcoin seller, not just a buyer. Long term, the model still depends on Bitcoin appreciating over time.
