Strategy May Offload $1.25B in Bitcoin as Its Funding Model Cracks, the 'Never Sell' Era Ends as 80% Stock Rout Forces Saylor's Hand

Michael Saylor's Strategy has authorised the sale of up to $1.25 billion worth of Bitcoin to rebuild cash reserves, abandoning it’s "never sell" doctrine as the company's market premium over its Bitcoin holdings collapses below parity. The Silicon Review examines how the world's largest corporate Bitcoin holder is fighting for survival.

Michael Saylor's Bitcoin empire is cracking.

Strategy, the company that transformed itself into the world's largest corporate Bitcoin holder, has authorised the sale of up to $1.25 billion worth of Bitcoin to rebuild cash reserves. The move marks a stunning reversal of the "never sell" doctrine that defined the company's identity and inspired dozens of imitators.

The pressure is immense. Bitcoin has lost more than half its value since peaking above $126,000 in October 2025, recently dropping below the key psychological level of $60,000. Strategy's common stock has plunged more than 80 per cent from its November 2024 peak. Its preferred stock STRC touched a record low last week, now trading at a 16 per cent discount to face value.

The trigger for the pivot is a critical metric known as mNAV the ratio of the company's enterprise value to the value of its Bitcoin holdings. Last Friday, that ratio fell below 1 for the first time, meaning the market now values Strategy at less than the Bitcoin it holds. That premium had long allowed Strategy to issue stock above the value of its coins and recycle the proceeds into more Bitcoin. With the premium gone, the flywheel has started running in reverse.

"Both the common and preferred shareholders, they are effectively saying we are going to sell Bitcoin to support shareholders," said Bohan Jiang of FalconX.

The company is now taking extraordinary measures. Strategy launched two US$1 billion buyback programs for its common and preferred shares. It increased the dividend on its STRC preferred shares from 11.5 per cent to 12 per cent, effective July 1 . And it authorised the Bitcoin Monetization Program, permitting the sale of Bitcoin to replenish the US dollar reserve and support its capital structure.

The company currently holds 847,363 Bitcoin worth approximately US$51 billion. Its cash reserve has been rebuilt to about US$2.55 billion, and the board has set a new policy requiring it to hold at least 12 months of preferred-dividend and interest payments in cash.

Strategy's co-founder and executive chairman Michael Saylor, who previously declared "never sell Bitcoin," is now defending the pivot. He compared the company to a real estate firm that buys low and sells high; arguing that selling some assets to pay obligations is sound business practice.

Here is the question this saga raises. A company that defined itself by never selling Bitcoin is now selling Bitcoin to survive. Its stock has lost 80 per cent of its value, its preferred shares trade at a discount, and its market premium over its holdings has disappeared. When the world's largest corporate Bitcoin holder breaks its most sacred rule, is this a pragmatic survival move or the beginning of the end for the entire corporate Bitcoin treasury model?

As Strategy may offload $1.25 billion in Bitcoin as its funding model cracks, The Silicon Review asks a final question. When a company built on a single asset must sell that asset to survive, was it ever a sustainable business or just a gamble that ran out of time?

FAQ:

Q: Why is Strategy selling Bitcoin?
A: Strategy has authorised the sale of up to $1.25 billion worth of Bitcoin to rebuild cash reserves, pay preferred dividends and debt interest, and fund stock buyback programs after its market premium over Bitcoin holdings collapsed below parity.

Q: How much Bitcoin does Strategy hold?
A: As of June 28, Strategy holds 847,363 Bitcoin, worth approximately US$51 billion at current prices.

Q: What is the mNAV metric?
A: mNAV is the ratio of Strategy's enterprise value to the value of its Bitcoin holdings. When it falls below 1, the company is valued at less than its Bitcoin holdings, breaking the funding model that allowed it to issue stock above the value of its coins.

Q: How much has Strategy's stock fallen?
A: Strategy's common stock has plunged more than 80 per cent from its November 2024 peak, while its preferred stock STRC traded at a 16 per cent discount to face value last week.

Q: Did Strategy stop buying Bitcoin?
A: Yes, Strategy paused Bitcoin purchases last week, marking the first time since 2022 it has not added to its holdings while holding the sale authority.

Q: What are Strategy's cash reserve requirements?
A: Strategy's board set a new policy requiring it to hold at least 12 months of preferred-dividend and interest payments in cash, approximately $1.76 billion annually.