Strategy Sells Bitcoin for Buybacks, Reverses Multi-Year Treasury Strategy
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
bitcoincorporate-treasury
Fazen Markets Editorial Desk
Collective editorial team · methodology
Trades XAUUSD 24/5 on autopilot. Verified Myfxbook performance. Free forever.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. Vortex HFT is informational software — not investment advice. Past performance does not guarantee future results.
Strategy disclosed a program to sell bitcoin holdings from time to time to fund a U.S. dollar reserve and share repurchases. The announcement on June 29, 2026, marks a significant reversal for the company, which has been an aggressive accumulator of bitcoin for years. As of 15:31 UTC today, bitcoin trades at $59,379, down 0.98% over the past 24 hours. The company's stock rose approximately 9% in pre-market trading following the disclosure.
The policy shift comes after a multi-year period where Strategy built one of the largest corporate bitcoin treasuries on record. The company began its acquisition strategy in August 2020, amassing over 190,000 bitcoin at an aggregate purchase price of approximately $6.09 billion. Its last major purchase was announced in April 2025, adding 25,000 bitcoin for around $1.65 billion when bitcoin traded near $66,000.
The current macro backdrop features elevated interest rates, with the Federal Funds Rate above 4.5%. This creates a higher opportunity cost for holding non-yielding assets like bitcoin. The primary catalyst for the reversal appears to be the significant discount between the company’s stock price and its net asset value, where the value of its bitcoin holdings far exceeds its market capitalization. The board authorized the new program to narrow this persistent discount by returning capital to shareholders directly.
Strategy's bitcoin holdings were last reported at 192,500 BTC as of its Q1 2026 10-Q filing. At the current price of $59,379, that portfolio is valued at approximately $11.43 billion. The total 24-hour trading volume for bitcoin is $30.43 billion. The company’s total market capitalization prior to the announcement was roughly $8.2 billion, implying a discount to its bitcoin holdings alone of nearly 28%, excluding its enterprise software business.
A comparison of Strategy's performance versus bitcoin itself highlights the valuation disconnect. Over the past 12 months, while bitcoin appreciated 25%, Strategy's stock underperformed, rising only 12%. The company's discount to its net asset value has widened from an average of 18% in 2024 to its current level. Its enterprise software business generated $125 million in revenue last fiscal year.
| Metric | Strategy Stock (Pre-Announcement) | Bitcoin (BTC) |
|---|---|---|
| 12-Month Return | +12% | +25% |
| Key Holders | CEO (8.3%), Vanguard (6.1%) | Corporate & ETF Holdings |
The immediate second-order effect is a modest increase in sell-side pressure on bitcoin from a known, large holder. Each $100 million of bitcoin sales by Strategy would equate to roughly 1,685 BTC at current prices, representing about 0.055% of the total 24-hour volume. This is a manageable amount for the $1.19 trillion asset. Listed bitcoin miners like Marathon Digital (MARA) and Riot Platforms (RIOT) could face sentiment pressure from the news, as their investment thesis partially relies on corporate treasury adoption.
A key counter-argument is that Strategy’s program is not a firesale but a measured, opportunistic monetization to enhance shareholder value. The company explicitly stated sales would occur “from time to time,” suggesting a lack of urgency. Positioning data shows leveraged funds increased their net short positions in CME bitcoin futures by 15% last week. The flow implication is a potential rotation from pure-play crypto proxies like Strategy into broader technology ETFs or directly into bitcoin spot ETFs, which offer more liquid exposure.
Investors should monitor Strategy's Q2 2026 10-Q filing, due by mid-August, for the initial size of the share repurchase authorization and any bitcoin sold in the quarter. The next U.S. CPI print on July 15 will influence broader risk asset sentiment and bitcoin’s price, a key variable for Strategy’s balance sheet. The company’s next earnings call, scheduled for early August, will provide management commentary on the execution pace of the new program.
Key levels to watch include bitcoin’s 200-day moving average, currently near $57,200, which has acted as support. A sustained break below this level could accelerate the company’s selling to lock in gains. For Strategy’s stock, the pre-market high of $540 represents immediate resistance; clearing it would signal market approval of the strategic pivot.
Tesla sold 75% of its bitcoin holdings in Q2 2022, citing liquidity needs due to China’s COVID lockdowns. That was a one-time de-risking event. Strategy’s program is framed as an ongoing capital allocation tool, more akin to a gold miner selling production to fund dividends. The magnitude is different; Tesla held roughly 42,000 BTC, while Strategy’s treasury is over 190,000 BTC.
As a U.S. corporation, Strategy faces a 21% federal corporate tax rate on capital gains from bitcoin sales. The company uses specific identification for cost basis. Given its early acquisitions had an average cost below $10,000 per bitcoin, the taxable gain on current sales would be substantial. This tax liability reduces the net capital available for buybacks by roughly one-fifth of the gain.
No major public company holds a bitcoin position comparable to Strategy’s percentage of assets. Smaller holders like Block (SQ) and Coinbase (COIN) treat bitcoin as a strategic reserve, not a trading asset. They are unlikely to initiate similar programs unless a severe liquidity crisis emerges. The precedent is more relevant for future companies considering large allocations, highlighting the eventual need for an exit mechanism.
Strategy pivoted from accumulation to monetization of its bitcoin treasury to arbitrage its deep stock discount.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
Vortex HFT is our free MT4/MT5 Expert Advisor. Verified Myfxbook performance. No subscription. No fees. Trades 24/5.
Trade the assets mentioned in this article
Trade on BybitSponsored
Open a demo account in 30 seconds. No deposit required.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.