Strategy introduced a five-part Digital Credit Capital Framework Monday, authorizing its first Bitcoin selldown program, raising the STRC preferred dividend rate, and establishing separate $1 billion buyback programs for its preferred securities and Class A common stock, as the company's STRC shares traded as low as $71.25 last Friday, a 28.75% discount to par value.
The announcement came through an 8-K filing with the Securities and Exchange Commission and arrived ahead of Monday's Nasdaq open, after which MSTR shares were bid up more than 5.5% in pre-market trading. STRC also rose 9% on the news, according to TradingView data.
"Strategy remains committed to Bitcoin as its primary treasury reserve asset," said Michael Saylor, Founder and Executive Chairman. "At the same time, Digital Credit requires liquidity, discipline, and active capital management. This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive. This framework also sets out how we plan to use our capital management toolkit while maintaining our commitment to long-term Bitcoin exposure."
The framework marks a departure from the company's previous posture as a one-directional capital raiser. CEO Phong Le framed it that way directly.
"Strategy is evolving from one-way capital issuance to active capital management," Le said. "We intend to move between issuing securities when capital is attractive and repurchasing securities when our instruments trade at levels that make buybacks accretive. This flexibility is designed to create shareholder value, improve corporate performance, and strengthen the quality and market standing of Strategy's securities in the eyes of investors."
🚨 @MicroStrategy just gave itself permission to sell Bitcoin.
— HodlFM (@Hodl_fm) June 29, 2026
The company announced a $BTC monetization program of up to $1.25B to help refill its dollar reserve.
It also announced:
> $1B buyback authorization for $STRC and $MSTR
> reserves cannot be used for those buybacks
>… pic.twitter.com/aNshSnaJSm
What the Bitcoin monetization program actually allows
The board authorized Strategy to sell BTC under three specific circumstances: to generate up to $1.25 billion for the USD Reserve, to fund preferred dividends and interest expenses when management determines selling Bitcoin is more advantageous than issuing common stock, and to fund repurchases of preferred securities or Class A shares. Any sale outside those purposes requires additional board authorization.
The program does not obligate the company to sell any Bitcoin. Strategy holds 847,363 BTC purchased for a combined $64.1 billion at an average of $75,651 per coin. The company did not acquire any Bitcoin during the week ended last Sunday. It has added a net 3,625 BTC in June after buying 3,657 BTC and selling 32 BTC earlier in the month. Bitcoin traded near $60,018 at the time of the announcement.
CFO Andrew Kang put the combined coverage figure in concrete terms.
"Bitcoin is capital," Kang said. "This program gives Strategy the flexibility to use a portion of its BTC Reserve to strengthen Digital Credit, fund or replenish the USD Reserve, fund dividend payments and interest expense, and fund accretive repurchases when BTC monetization is more advantageous than issuing common equity. With a $2.55 billion USD Reserve and $1.25 billion of Board-authorized reserve-building BTC monetization capacity, Strategy has approximately 25.9 months of current preferred stock dividend liquidity coverage."
The STRC rate increase and what the reserve policy covers
Strategy raised the STRC annual dividend rate to 12% from 11.5%, effective for semi-monthly periods with record dates on or after July 1, 2026. The company said its corporate objective is for STRC to trade near its $100 stated amount over time, in a range of approximately $99 to $100.
The $2.55 billion USD Reserve, which includes expected cash proceeds from shares sold under the at-the-market offering program that had not yet settled as of June 28, covers approximately 17.4 months of current annual preferred dividend payments and interest expense of roughly $1.76 billion. Under the new board policy, the reserve can only be used for those two purposes, and the company must maintain a minimum of 12 months of coverage at all times. Any reduction below that floor requires board approval.
Strategy said MSTR common stock repurchases will not be funded from the USD Reserve. To the extent Bitcoin sales fund those repurchases, they must occur under the BTC Monetization Program. Grayscale's research head Zach Pandl said last week that Strategy should sell $3 billion in Bitcoin to cover its cash obligations, a figure the framework does not commit to but addresses through the $1.25 billion authorized capacity combined with the existing reserve.
Strategy raised $1.15 billion in MSTR shares alongside the announcement
Alongside the framework disclosure, Strategy reported raising approximately $1.15 billion in net proceeds from the sale of 12.67 million MSTR shares under its at-the-market offering program. Those proceeds are reflected in the $2.55 billion USD Reserve figure.
The STRC rate increase will be evaluated monthly going forward based on STRC trading levels, market yields, credit spreads, Bitcoin price and volatility, USD Reserve coverage, capital market conditions, and the company's overall capital structure. Strategy said it will not necessarily increase the STRC rate solely because STRC trades below its stated amount. Dividends on STRC remain subject to declaration by the board and are not guaranteed.
MSTR shares have fallen nearly 50% year-to-date ahead of Monday's pre-market recovery. Strategy said it expects to remain disciplined in common equity issuance, particularly when the stock trades at or near 1x mNAV per share.
Kristian Koch
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