Strategy has introduced a sweeping new capital framework that includes up to $2 billion in stock buybacks, a Bitcoin monetization program, and a new reserve policy aimed at strengthening its balance sheet while maintaining its long term commitment to Bitcoin.
Key Takeaways
- Strategy approved up to $2 billion in buybacks, split between preferred securities and Class A common stock.
- The company can sell Bitcoin to build reserves, pay dividends, and fund repurchases, though it is not required to do so.
- Strategy’s USD reserve stands at $2.55 billion, covering about 17.4 months of preferred dividend and interest obligations.
- The annual dividend rate for STRC preferred shares will increase to 12 percent beginning July 1.
What Happened?
Strategy announced a new Digital Credit Capital Framework on June 29, introducing several capital management initiatives designed to improve liquidity, strengthen its preferred securities, and preserve long term exposure to Bitcoin.
The company said the framework marks a transition toward more active capital management, giving it greater flexibility to issue or repurchase securities depending on market conditions and valuation.
$MSTR – STRATEGY LAUNCHES $1.25B BTC PLAN
— *Walter Bloomberg (@DeItaone) June 29, 2026
Strategy unveiled a new capital framework, including a $1 billion repurchase program for digital credit securities.
The board also approved a Bitcoin monetization program to generate up to $1.25 billion for its USD reserve, which stood…
Strategy Introduces Five Part Capital Framework
The new framework consists of five main components:
- A Board approved USD Reserve policy.
- A revised STRC dividend policy.
- A Digital Credit Securities repurchase program.
- A Class A common stock repurchase program.
- A Bitcoin monetization program.
Executive Chairman Michael Saylor said the company remains committed to Bitcoin as its primary treasury reserve asset while recognizing the need for liquidity and active capital management. Saylor said:
Company Builds Multi Billion Dollar Safety Reserve
As of June 28, Strategy’s USD reserve totaled approximately $2.55 billion, including expected cash proceeds from shares sold under its at the market offering program that had not yet settled.
The company said the reserve can only be used to support:
- Preferred stock dividend payments.
- Interest payments on outstanding debt.
Strategy estimates its current annual preferred stock dividend and interest obligations at roughly $1.76 billion, giving the reserve around 17.4 months of coverage.
The board also adopted a policy requiring the company to maintain a minimum reserve equal to at least 12 months of expected annual dividend and interest expenses.
When combined with an additional $1.25 billion in authorized Bitcoin monetization capacity, Strategy said it has approximately $3.8 billion in liquidity coverage, equivalent to about 25.9 months of obligations.
Strategy Authorizes $2 Billion in Buybacks
The company authorized two separate repurchase programs totaling $2 billion.
The first allows for up to $1 billion in repurchases of Digital Credit Securities, including STRC, STRF, STRD, and STRK preferred shares.
The second authorizes up to $1 billion in buybacks of Class A common stock.
Neither program has an expiration date and neither obligates the company to make purchases. Management said repurchases will depend on market conditions and whether they are considered accretive to shareholders.
Chief Executive Officer Phong Le described the new framework as a shift away from one way capital issuance.
Bitcoin Monetization Program Adds Flexibility
Strategy’s board also approved a Bitcoin Monetization Program, allowing the company to sell BTC from time to time for three primary purposes:
- Building up to $1.25 billion in additional reserves.
- Funding preferred stock dividends and interest expenses.
- Financing share repurchases and related transaction costs.
The company stressed that the program does not obligate it to sell Bitcoin and can be modified or suspended at any time.
According to its latest filing, Strategy did not acquire additional Bitcoin during the week ending June 28 and continues to hold 847,363 BTC, purchased at an aggregate cost of $64.10 billion and an average purchase price of $75,651 per Bitcoin.
Strategy also increased the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC, to 12 percent, effective for dividend periods beginning July 1.
CoinLaw’s Takeaway
In my experience, this announcement shows that Strategy is evolving beyond simply buying and holding Bitcoin. The company is building a more sophisticated financial structure around its massive BTC treasury, giving itself the flexibility to raise cash, support investors, and repurchase shares when opportunities arise. I found the decision to authorize Bitcoin sales particularly notable because it signals that even the largest corporate Bitcoin holder is willing to use its digital assets more actively while still maintaining a strong long term conviction in Bitcoin.
