Wall Street firm Benchmark reaffirmed its Buy rating on Strategy, setting a 12-month price target of $570 after the company introduced a new Bitcoin capital framework. The company’s Class A stock rose 12.6% to $92.70 on Monday, while preferred shares gained 12.2% to $83.70 before both edged slightly lower in premarket trading on Tuesday.
New framework allows Bitcoin sales for liquidity
Strategy’s updated plan authorizes Bitcoin sales of up to $1.25 billion, equivalent to about 21,000 BTC at current prices. This represents roughly 2.5% of its 847,363 BTC holdings, which account for more than 4% of Bitcoin’s total supply.
The move signals a shift from the company’s long-standing approach of continuous accumulation. Instead, the framework allows Strategy to actively manage its balance sheet by raising cash, repurchasing shares, and meeting debt obligations without relying solely on issuing stock or taking on new debt. The company currently holds about $2.55 billion in cash, enough to cover roughly 17 months of dividends and interest expenses.
Shift seen as defensive amid unrealized losses
The policy change comes as Bitcoin trades near $59,200, well below Strategy’s average purchase price of $75,651. This leaves the company sitting on a sizable unrealized loss, making the ability to sell assets a defensive tool to maintain liquidity and stabilize its financial position.
Benchmark said the new structure gives Strategy greater control over its assets and liabilities, while other analysts described the adjustment as a pragmatic response to ongoing volatility.
Mixed analyst reactions and market skepticism
Not all market participants are fully convinced. Some traders have raised concerns that selling portions of Bitcoin holdings could weaken Strategy’s identity as a long-term holder and affect its market positioning.
Analyst views are also split. While some firms maintained positive ratings, others trimmed their price targets to reflect a more cautious near-term outlook for Bitcoin. TD Cowen, for example, reduced its 12-month target for the stock from $400 to $260, citing revised assumptions for the underlying asset.
Potential impact on Bitcoin market sentiment
Strategy has previously sold Bitcoin in limited amounts, including 704 BTC in 2022 to cover tax obligations and 32 BTC in May 2026. The new authorization introduces the possibility of larger, more structured sales, with some estimates suggesting total disposals could reach between $2 billion and $3 billion if the company moves to ease balance sheet pressure.
Market participants are expected to closely watch disclosures for any actual sales, as the timing and scale of these transactions could influence short-term Bitcoin price movements. With Strategy’s shares closely tied to Bitcoin performance, any significant changes to its holdings are likely to ripple through broader market sentiment in the months ahead.
For deeper insight into institutional Bitcoin moves, explore our analysis in Bitcoin strategic reserve and its market impact.
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