Strategy plans to increase its Bitcoin sales fourfold, from $1.25 billion to $5 billion, to build cash reserves, fund dividend payments, and buy back its own stock. Analysts warn the expanded selling could add pressure on BTC as long-term holders trim positions and spot ETF inflows remain negligible.
Strategy, the world's largest Bitcoin treasury firm, plans to increase its Bitcoin sales fourfold to $5 billion, up from the $1.25 billion program it set in July. President and CEO Phong Le confirmed the plan during the company's earnings call on Thursday, laying out three uses for the proceeds.
Three reasons behind the sale
First, Strategy will lift its U.S. dollar reserve by up to $1.25 billion, bringing its total cash buffer to $5 billion, or about three years of coverage. That target matches what JPMorgan analysts had recommended, though the bank urged Strategy to raise the cash through MSTR stock sales rather than Bitcoin.
Second, the company is directing $1.76 billion from Bitcoin sales toward its annual dividend payments, which are tied to its Stretch (STRC) and other preferred stock. Third, Strategy plans to use an extra $2 billion to fund its stock repurchase programs. Together, the three uses bring planned crypto sales to $5.01 billion, a fourfold jump from the $1.25 billion Bitcoin monetization program Strategy set in July.
Will the expanded sale hit BTC?
Strategy had already sold $216 million of Bitcoin to cover dividend obligations, when the market was still pricing only the original $1.25 billion program. At the time, Grayscale said the plan would help restore confidence in Strategy's financing structure and help Bitcoin form a durable bottom, though whether that view still holds after a fourfold increase in planned sales remains unclear.
Unless the additional Bitcoin moves through over-the-counter channels rather than the open market, the expanded program could become another headwind for BTC. If Strategy raised its planned sales to $5 billion within a month, what stops it from raising that figure again should the downturn drag on?
Pressure builds from several directions
The sale could help lift STRC toward Strategy's $99-$100 target, and MSTR stock could benefit from the buyback. But BTC looks set to be the loser here, especially if the sales weigh on market sentiment.
Galaxy Research had already warned that Strategy's Bitcoin sales would not resolve its structural issues unless the company generates recurring income from part of its holdings. That warning looks more relevant now: Bitcoin's largest whale is offloading its stash, and long-term holders are also reducing their exposure. Meanwhile, U.S. spot Bitcoin ETF inflows remain negligible, leaving little demand to absorb the coming selling pressure.
Source: AMBCrypto
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