Bitcoin (BTC) Price News: Strategy Gets Approval to Sell Bitcoin as the Price Tests Critical Support

Strategy has unveiled a new capital management framework that gives its board the option to sell part of the company’s Bitcoin holdings if additional cash is needed. That is a notable change for a company that has spent years promoting a long-term Bitcoin holding strategy.

The company said the Digital Credit Capital Framework is designed to strengthen its preferred stock programs, improve liquidity, and continue treating Bitcoin as its primary treasury reserve asset.

Strategy Launches a $1.25 Billion Bitcoin Monetization Program

Coin Bureau shared that the Bitcoin Monetization Program worth up to $1.25 billion. The framework allows Strategy to sell some of its Bitcoin if it needs to increase its USD Reserve, which is used to fund preferred stock dividends and interest payments.

Strategy reported that its USD Reserve stood at approximately $2.55 billion as of June 28. Based on annual preferred stock dividend and interest expenses of roughly $1.76 billion, that reserve covers about 17.4 months of obligations. The company also introduced a policy requiring the reserve to remain large enough to cover at least 12 months of dividend and interest payments unless the board approves an exception.

Beyond the Bitcoin authorization, Strategy approved up to $1 billion in preferred security buybacks and another $1 billion for MSTR share repurchases. It also raised the dividend on STRC preferred shares from 11.50% to 12.00%, with the increase taking effect on July 1.

Michael Saylor made it clear that Bitcoin remains the company’s primary treasury reserve asset. At the same time, he said managing the company’s preferred securities requires liquidity and disciplined capital management. Strategy currently owns 847,363 BTC purchased at an average cost of $75,651 per Bitcoin. The company also confirmed it sold 32 BTC on June 1, its first Bitcoin sale since 2022.

Read Also: BlackRock Just Triggered the Largest Bitcoin Sell in History

The BTC Price Is Approaching a Key Support Zone

We had a look at the Bitcoin 2-week chart shared by Patel, and the technical picture remains under pressure. The BTC price is trading around $59,744 after dropping 5.6% during the latest session. On this chart, Bitcoin is about 81.3% below the cycle peak near $320,000.

Crypto analyst Crypto Patel believes Bitcoin has now broken below a structural trendline that had supported the market for nearly nine years. In his view, staying below that level raises the odds of a deeper correction, with a move below $50,000 becoming increasingly possible before the next major expansion phase.

The first support sits near $54,454. If buyers lose that level, attention shifts to the next major support around $42,500. On the upside, the descending neckline between roughly $75,000 and $100,000 continues acting as the biggest obstacle. Until the BTC price closes above that zone, the higher-timeframe trend continues favoring sellers.

Bitcoin Faces an Important Test

Strategy’s new framework arrives as the BTC price trades close to one of its most important technical support areas. The company emphasized that Bitcoin remains at the center of its treasury strategy. The new authorization simply gives the board another option if additional reserve funding becomes necessary. It does not mean Strategy intends to begin selling large portions of its holdings immediately.

For traders, the next few weeks could be important. Holding above the $54,454 support would give buyers an opportunity to stabilize the market and attempt another move toward higher resistance levels.

If the BTC price breaks below that support, the focus quickly shifts toward the $50,000 region, with the broader support around $42,500 becoming the next level to monitor. For now, the market is weighing two developments at the same time: Strategy has expanded its capital management tools, and Bitcoin is testing one of the most important support zones visible on the long-term chart.

FAQs

Why did Strategy authorize Bitcoin sales?

Strategy introduced a Bitcoin Monetization Program that allows it to sell up to $1.25 billion worth of Bitcoin if needed to strengthen its USD Reserve, which is used to fund preferred stock dividends and interest payments.

How much Bitcoin does Strategy own

Strategy currently holds 847,363 BTC, acquired at an average purchase price of about $75,651 per Bitcoin.