MicroStrategy authorizes $1.25B Bitcoin sales program to fund preferred dividends

MicroStrategy gets OK to sell up to $1.25B in Bitcoin; cash floor set at $2.55B

MicroStrategy filed an SEC 8‑K authorizing a “Digital Credit Capital Framework” to monetize Bitcoin holdings. The board-approved plan allows up to $1.25B in BTC sales to fund STRC preferred reserves and dividends, with a $2.55B minimum cash buffer (SEC filing).

This is authorization, not execution. The company has not sold $1.25B in BTC. It still holds 847,363 BTC, and bought no coins between June 22–28 (CoinDesk).

Altcoins wobbled on supply-risk repricing. Traders reacted to a potential new BTC seller, with sensitivity highest outside Bitcoin. CoinDesk flagged pressure in Ether, Solana, and Dogecoin alongside the headline (report).

Key terms to note:

Authorization cap: up to $1.25B in BTC sales (SEC 8‑K)
Use of proceeds: STRC preferred reserves and dividends (SEC 8‑K)
Liquidity guardrail: minimum $2.55B cash on balance sheet (SEC 8‑K)
Positioning snapshot: 847,363 BTC held; no buys June 22–28 (CoinDesk)

Why it matters now. A sale program can shift how markets price future BTC supply before any sale occurs. In thin liquidity, second-order effects spread fast across altcoins and derivatives (CoinDesk).

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