Key TakeawaysStrategy introduced a comprehensive capital management framework that permits Bitcoin liquidations totaling up to $1.25 billion for cash reserve building.Shares of MSTR surged 12.6% on Monday, reaching approximately $92.70, while STRC preferred stock advanced 12.2% to $83.70.Benchmark Equity Research maintained its Buy recommendation with a $570 target, viewing the strategic pivot favorably for investors.Critics emerged quickly. Brad Garlinghouse, Ripple’s CEO, dismissed the approach as nothing more than “financial engineering.”Tuesday’s premarket session saw both securities decline as investor doubts resurfaced.Michael Saylor’s Strategy is pivoting its operational philosophy. The Bitcoin-focused treasury corporation revealed a comprehensive capital management framework this week, representing a departure from its historically rigid accumulation-only strategy.Investors responded swiftly. MSTR shares climbed 12.6% during Monday’s session, settling near $92.70. The company’s STRC preferred stock posted gains of 12.2%, closing around $83.70.Strategy Inc, MSTRThe enthusiasm proved short-lived. Tuesday’s premarket activity showed both securities retreating as market participants weighed whether this strategic shift addresses fundamental concerns.Breaking Down the New FrameworkStrategy’s revised approach encompasses five distinct components: a dollar reserve mandate, modified preferred stock guidelines, a debt securities repurchase mechanism, a common stock buyback authorization, and a Bitcoin monetization component.Strategy sold 12,669,017 shares of $MSTR Class A common stock for net proceeds of $1.152 billion last week and announced their plans to sell another $1.25B of $BTC for more cash.Explains the absolute hammering of the stock last week.So far the market is responding well to it.… https://t.co/7nxfCZsdTG pic.twitter.com/QV5quVNeQm— K A L E O (@CryptoKaleo) June 29, 2026The critical figure is $1.25 billion—the maximum Bitcoin liquidation amount Strategy’s board has greenlit for funding these various programs.For context, $1.25 billion translates to approximately 21,082 BTC based on prevailing market rates. Given Strategy’s total holdings of 847,363 BTC, this authorization represents roughly 2.5% of its accumulated position.This isn’t Strategy’s first Bitcoin sale. The company previously liquidated 32 BTC in May and 704 BTC during 2022 for tax-related purposes, though it subsequently repurchased equivalent amounts.CEO Phong Le characterized the transition as an evolutionary milestone. “Strategy is transitioning from unidirectional capital raising to dynamic capital oversight,” he stated officially.Analyst and Market Reactions DivergeBenchmark Equity Research expressed approval. The firm confirmed its Buy thesis on Monday while maintaining its $570 twelve-month valuation target.Benchmark’s team characterized the transformation as converting Strategy from a singular Bitcoin accumulation platform into an entity that proactively manages assets and liabilities. They deemed it “a meaningful positive for equity holders.”Skepticism emerged elsewhere. Investor Simon Dedic proposed the announcement might signal a market bottom, theorizing that recent selling pressure potentially originated from Strategy preparing for this very disclosure.Trader Scott Melker adopted a wait-and-see stance. He acknowledged Strategy is addressing investor demands but emphasized that “only time will tell” whether confidence is genuinely restored.Arca’s chief investment officer Jeff Dorman took a stronger position, suggesting Strategy might require $2 billion to $3 billion in Bitcoin liquidations to eliminate what he described as a “persistent overhang” pressuring markets.Ripple CEO Brad Garlinghouse offered the harshest critique. Speaking with CNBC, he declared that “financial engineering fails to generate sustainable value” and argued Saylor’s organization “isn’t prioritizing the correct objectives.”Despite Monday’s spike, Strategy’s equity has experienced significant 2026 headwinds. Shares have declined nearly 45% year-to-date as Bitcoin endures an extended downturn.Bitcoin was trading below $59,000 at last check, substantially beneath previous peaks. Because Strategy’s stock functions as a leveraged Bitcoin exposure vehicle, the cryptocurrency’s decline has disproportionately impacted MSTR relative to the underlying asset.Strategy presently maintains approximately $2.55 billion in dollar reserves. Upon completing the authorized $1.25 billion Bitcoin sale, reserves would expand to roughly $3.8 billion—sufficient to satisfy more than two years of preferred dividend and debt interest requirements.The board has instituted a new requirement mandating Strategy maintain reserves covering at least one year of preferred dividend obligations. This policy represents a structural change from the company’s previous, more flexible cash management practices.The post Strategy (MSTR) Stock Surges After Bitcoin Sales Authorization Announced appeared first on Blockonomi.