Strategy Authorized to Sell $1.25B in Bitcoin, Reducing Forced Liquidation Risk

According to Bitfinex analysts, Strategy Inc. (Nasdaq: MSTR) has been authorized to sell up to $1.25 billion in bitcoin to support its dollar reserve and meet $1.76 billion in annual preferred stock obligations. The amount represents roughly 2.5% of Strategy's 847,363 BTC holdings.

Bitfinex said the authorization reduces tail risk from forced selling under balance sheet stress, providing the company with a structured liquidity mechanism. The analysts noted that this marks a shift from Strategy's original passive accumulation model to active capital management, describing the move as "structurally healthier than reactive selling under duress."