MicroStrategy Authorizes $1.25B Bitcoin Sale, Launches $2B Buyback on Monday

MicroStrategy announced on Monday a strategic shift in its capital allocation, authorizing the sale of up to $1.25 billion in bitcoin and launching a $2 billion stock buyback program—$1 billion each in common and preferred shares. The company also established a new liquidity policy requiring cash reserves to cover 12 months of preferred stock dividends and interest expenses. Current cash position stands at $2.55 billion from recent equity issuances.

The announcement signals a departure from the company's long-standing "buy and hold" strategy. MicroStrategy's key valuation metric mNAV (market net asset value) fell below 1.0 to 0.99, indicating the company's market value now trails its bitcoin holdings of approximately 847,363 BTC worth over $50 billion. The shift comes as bitcoin prices declined this year and the stock fell over 45% year-to-date, undermining the premium valuations that previously supported continuous capital-market fundraising for bitcoin purchases.