Strategy boosts buyback program to $2bn after shares recover

Key Facts

Strategy's new announcement of a $2 billion buyback program—double the previously reported $1 billion—escalates its dramatic shift from accumulation doctrine to a flexible model allowing bitcoin sales. The company (formerly MicroStrategy) said it may sell bitcoin from time to time to fund its U.S. dollar reserve and share repurchases, under a new capital framework that reverses its prior pledge to hold. Strategy still holds 847,363 BTC, worth approximately $51 billion.

This expansion of the buyback program coincided with a recovery in MSTR and STRC shares after a brutal week of sharp selloff, as bitcoin steadied around $60,000 (per market data). According to the official filing, the new capital framework aims to improve the capital structure after previous criticism of excessive reliance on bitcoin.

Traders should monitor MSTR's support and resistance levels at $81.81 and $87.67 as previously noted, with a possible breach of resistance after the recent recovery. The next quarterly report will be a key catalyst to see if Strategy has actually begun selling bitcoin and how that affects its balance sheet. The expanded buyback program may support the stock in the near term, but potential bitcoin sales remain a downside risk for the cryptocurrency.