Strategy Just Unveiled a Brand-New Approach to Bitcoin. Is the World's Biggest Bitcoin Treasury Company in Trouble?

Dominic Basulto, The Motley Fool

Wed, July 8, 2026 astatine 6:14 AM CDT 3 min read

The institution that famously told investors "Never merchantability your Bitcoin (CRYPTO: BTC)" is present selling its Bitcoin. After announcing a brand-new attack to Bitcoin connected June 29, Michael Saylor's Strategy (NASDAQ: MSTR), formerly known arsenic MicroStrategy, announced the monolithic merchantability of 3,558 BTC astatine a full terms of $216 million.

Strategy has done its precise champion to person investors that each this is being done to bolster semipermanent shareholder worth and to enactment the institution connected a overmuch stronger fiscal footing. But it's hard not to spot that the wheels are coming disconnected the Bitcoin treasury institution wagon.

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The Bitcoin treasury institution exemplary

Strategy famously created the conception of the Bitcoin treasury company, and that's wherefore its determination to merchantability immoderate of its Bitcoin has been truthful highly debated. If a institution acceptable up solely to accumulate Bitcoin is present selling immoderate of it, is the Bitcoin treasury institution concern exemplary broken?

The problem, rather frankly, is that the economical flywheel enactment successful spot to acquisition Bitcoin is present showing signs of slowing. Instead of backing its Bitcoin purchases with cash, Strategy has been backing them with proceeds from its assorted preferred banal offerings.

However, to get investors to wound connected these securities, they indispensable connection a sizable dividend. For example, Strategy Variable Rate Perpetual Stretch Preferred Shares Series A ("Stretch") (NASDAQ: STRC) presently pays retired an annualized dividend that yields 12%.

And that's wherever the Bitcoin income travel into play -- Strategy evidently needs much currency than primitively anticipated to support paying these dividends successful the future. The full constituent of the company's caller Bitcoin monetization programme is to merchantability Bitcoin and rise currency to support each the pieces of the flywheel moving successful unison.

Just bargain Bitcoin

It's clip to forgo each the pretense that investors tin make superior semipermanent returns by investing successful a institution that volition bargain Bitcoin for them. At the extremity of the day, investors should astir apt conscionable bargain Bitcoin directly. 

Admittedly, determination was a little play of clip erstwhile Strategy outperformed Bitcoin. But that clip has travel to an end. Year to date, Bitcoin is down 28%, portion Strategy is down 36%.

Just look astatine the terms of Strategy banal implicit the past 12 months. It has wholly collapsed successful value.