The stock of Strategy (formerly MicroStrategy) closed out the week at €92.50, capping a furious 27% rally that marks the strongest weekly surge in months. The catalyst was not a Bitcoin price spike but a fundamental shift in corporate strategy that had long been considered unthinkable: permission to sell the company’s vast cryptocurrency hoard.
For years, the company adhered to an ironclad “never sell” mantra, accumulating Bitcoin exclusively through equity and debt issuance. That doctrine ended abruptly when the board approved a new “Digital Credit Capital Framework.” At its heart is a $2.55 billion cash reserve — twice the figure cited in early reports — designed to shore up liquidity and cover dividend obligations, particularly on the 12% yielding “Stretch” preferred shares. To fill that cash barrel, the board authorised the selective sale of up to $1.25 billion of the company’s Bitcoin holdings under certain market conditions. Blockchain data already shows the first moves: roughly 491 Bitcoin left corporate wallets on 1 July, earmarked for the preferred dividend.
Alongside the monetisation programme, the board greenlit two separate buyback authorisations worth a combined $2 billion — $1 billion for common stock and another $1 billion for the preferred securities, which had been trading significantly below par value. The dual buyback is intended to reduce the persistent discount to net asset value (mNAV) that has widened over the past twelve months and to reassure investors fretting about dilution from dividend payments.
Should investors sell immediately? Or is it worth buying Strategy?
Wall Street has reacted with cautious optimism despite slashing price targets. Citi Research retained its buy rating but slashed its target from $260 to $136, arguing the new framework buys time but does not eliminate the underlying leverage on Bitcoin. BTIG and TD Cowen also cut their targets, citing the broader crypto downturn earlier this year, yet both maintained buy recommendations. The reasoning: the cash cushion and Bitcoin sale option lower the risk of forced equity issuance to fund dividends — precisely the dilution fear that had been hammering the stock.
Technically, the rally has provided some relief. The relative strength index (RSI) climbed to 44.7, exiting the oversold zone where it had been languishing. Yet the longer-term picture remains grim. The stock is still down roughly 31% year to date, and at €92.50 it trades well below its 50-day moving average of €122.47 and even further from the 200-day average of €148.84. The all-time high from July 2025 stands at €391.80, meaning the shares are still 76% off that peak. The 52-week low of €71.91, touched in late June, remains a critical support level.
The real test comes in August, when Strategy reports second-quarter 2026 earnings. That will be the first concrete opportunity for investors to assess whether the cash reserve and buyback programmes are working as intended — and whether the company’s new, more flexible approach to its 847,363 Bitcoin can arrest the slide that has erased nearly a third of its value this year.
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