Strategy's New Capital Plan Draws Optimism, While Critics Warn Of A 'Dead Cat Bounce' In Michael Saylor-Chaired Bitcoin Treasury Company

Market research platform Bull Theory noted optimism around Strategy Inc.‘s (NASDAQ:MSTR) new capital allocation strategy, which treats Bitcoin (CRYPTO: BTC) as a capital asset that can be tactically sold to fund operations.

Sign Of Good Things To Come?

Bull Theory interpreted the rally of MSTR stock and Perpetual Stretch Preferred Stock (NASDAQ:STRC) as evidence that Strategy is about to execute buybacks on both, not just leave the authorization unused.

“This is optimism building around active capital management rather than just Bitcoin accumulation, the market is betting Strategy can actually defend STRC’s price this time,” the market commentator said.

BREAKING: $MSTR is up 12.80% and $STRC is up 12.24% today.

The market is reacting to Strategy's new capital framework, which includes up to $1 billion in MSTR buybacks and another $1 billion in Digital Credit Securities buybacks.

Investors appear to be pricing in the… https://t.co/0a8jHLiaM3 pic.twitter.com/oIgIXOcWyB

— Bull Theory (@BullTheoryio) June 29, 2026

Khing Oei, Founder and CEO of Treasury, praised the framework, adding,” That is how a Bitcoin-backed credit business is supposed to operate. And these are the types of strong actions by management that are required in times of market stress.”

Pre-market $STRC is bid up toward 82. The market is rewarding $MSTR's below press release, and the logic is clean.

This is the cash reserve and buyback discipline I've been discussing. @Strategy now holds a $2.55bn USD reserve dedicated to preferred dividends and interest, 17.4… https://t.co/YFpbUS5pmk

— Khing Oei (@khingoei) June 29, 2026

Will The Rally Stall?

Popular cryptocurrency analyst Crypto Rover, however, questioned the new framework, noting that a company that is increasing payouts merely to keep the structure intact may not be as robust as it appears.

The analyst also wondered if the latest spike is a “dead cat bounce dressed as a comeback.”

Is Michael Saylor really back, or is this just a dead cat bounce dressed up as a comeback?$MSTR jumped nearly 13%.

But Strategy bought ZERO Bitcoin last week.

Instead, it sold another 12.67 million MSTR shares and raised $1.15 billion through more dilution.

The buybacks… pic.twitter.com/58dzjpLK6F

— Crypto Rover (@cryptorover) June 29, 2026

Ali Martinez, a widely followed cryptocurrency analyst and trader, turned bearish on MSTR after confirming a head-and-shoulders pattern on the stock’s weekly chart

The head and shoulders chart pattern depicts a bullish-to-bearish trend reversal, signaling that an upward trend is nearing its end.

The analyst set a downside target of $28, marking a 70% drop from current levels.

BREAKDOWN CONFIRMED!

Strategy $MSTR targets $28. https://t.co/FsU5I2W7SH pic.twitter.com/KP5VY1F9eq

— Ali Charts (@alicharts) June 29, 2026

More Bitcoin Sales On The Horizon?

The sweeping new framework is designed to strengthen Strategy’s preferred securities, enhance liquidity and preserve long-term Bitcoin exposure.

The key aspect is a new Bitcoin monetization program that lets the company sell BTC to raise up to $1.25 billion for cash reserves, pay preferred dividends and interest on debt, and support repurchases of preferred and common stock.

However, the new framework drew sharp criticism from longtime Bitcoin critic Peter Schiff, who said that the Michael Saylor-founded firm is transitioning from being Bitcoin’s largest corporate buyer to a Bitcoin seller.

Price Action: At the time of writing, BTC was exchanging hands at $59,639.58, down 0.61% over the last 24 hours, according to data from Benzinga Pro.

Strategy shares rose 0.73% in after-hours trading after closing 12.60% higher at $92.68 during Monday’s regular trading session.

Benzinga’s Edge Stock Rankings indicate that MSTR has underperformed with a weaker price trend across short-, medium-, and long-term timeframes.

Photo: PJ McDonnell / Shutterstock.com