{"id":74913,"date":"2026-07-03T23:16:56","date_gmt":"2026-07-03T23:16:56","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/what-can-it-do-instead-of-selling-btc\/"},"modified":"2026-07-03T23:16:56","modified_gmt":"2026-07-03T23:16:56","slug":"what-can-it-do-instead-of-selling-btc","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/what-can-it-do-instead-of-selling-btc\/","title":{"rendered":"What Can It Do Instead of Selling BTC?"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Strategy\u2019s overhaul is designed to relieve near-term liquidity pressure while reducing the need for forced bitcoin sales.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The plan includes a controversial BTC monetization tool that could permit limited sales if needed.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">New research suggests the company should focus on generating income from its bitcoin holdings rather than selling them.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Why Selling Bitcoin Became the Central Concern<\/h2>\n<p>Pressure built after weeks of mounting stress in Strategy\u2019s preferred-stock structure, according to a July 3 research note by Galaxy Digital\u2019s head of firmwide research Alex Thorn. STRC, its main preferred security, was meant to trade near $100 but dropped to $71.25 on June 26 as <span>bitcoin<\/span> prices fell and the company\u2019s cash reserves declined.<\/p>\n<p>That sharp decline forced investors to confront a difficult and increasingly urgent question about Strategy\u2019s next move. Would Strategy sell <span>BTC<\/span>, issue more common stock or reduce preferred dividends? Each option carried risk for a different group of investors. Selling <span>bitcoin<\/span> could damage Strategy\u2019s long-term <span>BTC<\/span> story, while selling common stock could dilute holders of its publicly traded shares (ticker: MSTR).<\/p>\n<p>Strategy <a href=\"https:\/\/news.bitcoin.com\/strategy-launches-2-55b-reserve-shield-as-mstr-plunges-30-and-bitcoin-hits-60k\/\">responded<\/a> with a five-part Digital Credit Capital Framework. It includes a U.S. dollar reserve policy, a revised STRC dividend policy, $1 billion in preferred-stock repurchase authorization, $1 billion in MSTR stock repurchase authorization and a <span>BTC<\/span> <a href=\"https:\/\/news.bitcoin.com\/strategys-bitcoin-sale-authorization-reduces-risk-of-forced-btc-selling-analysts-say\/\">monetization program<\/a>. Strategy also raised STRC\u2019s annual dividend rate from 11.5% to 12%.<\/p>\n<h2>Did Strategy Buy Enough Time?<\/h2>\n<p>The market initially liked the move. MSTR rose 12.6% after the announcement, while STRC climbed 12.2%. STRC later traded near $87, still below par but well above its recent low.<\/p>\n<p>Thorn called the overhaul useful but incomplete. He wrote:<\/p>\n<blockquote>\n<p>\u201cThis was a smart move by Strategy, but it may not resolve structural issues forever.\u201d<\/p>\n<\/blockquote>\n<p>He added that \u201cin a sense, Strategy\u2019s move Monday simply kicks the can down the road. But Strategy kicked the can pretty far.\u201d<\/p>\n<p>That extra breathing room matters because the issue was <span>liquidity<\/span>, not total assets. Strategy holds 847,363 <span>BTC<\/span>, making it one of the largest <span>bitcoin<\/span> holders in the world. By raising more than $1 billion through common-stock sales and setting a 12-month minimum cash reserve policy, the company lifted cash coverage to about 17 months.<\/p>\n<h2>What Could Strategy Do Instead of Selling BTC?<\/h2>\n<p>The biggest question now is how Strategy will use its expanded flexibility. Thorn said \u201cthe most controversial part of the announcement is the \u2018 <span>BTC<\/span> monetization\u2019 program,\u201d because it gives the company the option to sell <span>bitcoin<\/span> if needed.<\/p>\n<p>Instead, the Galaxy Digital head of research argued Strategy should pursue other ways to raise cash. \u201cStrategy should explore generating income from the <span>BTC<\/span> stack without necessarily selling spot <span>BTC<\/span>,\u201d Thorn noted.<\/p>\n<p>He suggested using only a small portion of the company\u2019s holdings through conservative lending or options strategies, stating:<\/p>\n<blockquote>\n<p>\u201cThat could mean lending a small, segregated portion of its <span>bitcoin<\/span> under conservative terms, or it could mean options strategies that harvest <span>volatility<\/span> while preserving most of the upside.\u201d<\/p>\n<\/blockquote>\n<p>\u201cThese could be structured trades that monetize part of the stack while limiting counterparty, custody, and duration risk,\u201d he added.<\/p>\n<h2>Why Optionality Could Define Strategy\u2019s Next Move<\/h2>\n<p>Those alternatives would not be risk-free. <span>Bitcoin<\/span> lending introduces counterparty risk, while options strategies could limit some upside. However, a modest, tightly managed program could create recurring dollar income while preserving most of Strategy\u2019s <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> exposure.<\/p>\n<p>Strategy\u2019s overhaul gives the company more flexibility and appears to have eased its immediate funding concerns. Still, it faces large preferred obligations and $6.7 billion in outstanding converts due in 2027 and 2028. Thorn concluded:<\/p>\n<blockquote>\n<p>\u201cAll of this said, we do believe Strategy has made a wise decision to increase its optionality.\u201d<\/p>\n<\/blockquote>\n<p>Whether that optionality becomes a lasting solution will depend on <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> prices, market conditions and whether Strategy can generate <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a> without weakening the long-term <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> investment thesis that has defined MSTR.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/strategys-bitcoin-stack-raises-the-key-question-what-can-it-do-instead-of-selling-btc\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Strategy\u2019s overhaul is designed to relieve near-term liquidity pressure while reducing the need for forced bitcoin sales. The plan includes a controversial BTC monetization tool that could permit limited sales if needed. New research suggests the company should focus on generating income from its bitcoin holdings [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":74914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74913"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=74913"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74913\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/74914"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=74913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=74913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=74913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}