Strategy May Sell Up to $1.25 Billion in Bitcoin Amid Cryptocurrency Decline

Strategy, a company that issues stock and debt to buy Bitcoin, is shifting its business model in response to the cryptocurrency's declining value. The price of Bitcoin has dropped by around 40% over the past year and is now down about 50% from its high in 2025. As a result, Strategy may sell up to $1.25 billion in Bitcoin to fund stock buybacks, support payments on preferred stock and bonds, and build a cash reserve.

The company's old model, which involved simply holding onto the Bitcoin, is no longer viable due to the price decline. This pivot demonstrates that Strategy is willing to adapt to changes in the cryptocurrency market. However, this shift also raises concerns about the long-term viability of investing in cryptocurrencies through companies like Strategy.

Investors who buy into Strategy are essentially outsourcing their Bitcoin investments without doing the work themselves. While it's possible that cryptocurrencies will regain popularity, there is a risk that the current drawdown may be too much for even Strategy to absorb. The company's decision to sell off some of its Bitcoin holdings could be seen as a sign that the market has changed irreparably.