Strategy’s Updated Bitcoin Framework Sparks Debate as MSTR and STRC Shares Rally

Michael Saylor’s Strategy gained support from Benchmark Equity Research, which reiterated a Buy rating with a $570 price target after the company unveiled a revised capital framework. MSTR shares rose 12.6% Monday while STRC preferred shares climbed 12.2%, though both slipped in premarket trading Tuesday as some investors questioned the model’s long-term staying power.

Framework Allows Limited Bitcoin Sales

The update authorizes potential Bitcoin sales of up to $1.25 billion, representing roughly 2.5% of Strategy’s total holdings of more than 847,000 BTC. While the company has positioned itself as a long-term accumulator, this marks another instance of selective selling following a small transaction earlier this year.

Analysts See Shift Toward Active Capital Management

Benchmark described the move as transforming Strategy from a one-directional accumulation strategy into active management of both sides of its balance sheet, calling it a positive development for shareholders. Some investors suggested the announcement could signal a turning point after weeks of volatility.

Critics Remain Unconvinced

Other voices in the industry expressed doubt, with some arguing larger Bitcoin sales may be needed to relieve pressure on the market. Ripple’s CEO was particularly critical, suggesting the company’s financial strategy has not served long-term value creation.