Strategy has unveiled a “Digital Credit Capital Framework” that formally authorises the Bitcoin treasury firm to liquidate up to $1.25 billion worth of Bitcoin to fund cash reserves, cover preferred stock dividends, and repurchase securities including common stock.
Board-Approved BTC Monetization Program
The firm’s board approved a “BTC Monetization Program” allowing Strategy to sell Bitcoin periodically under specific conditions. The announcement, made on Monday June 29, 2026, did not include a fresh Bitcoin purchase, but instead confirmed the company’s so-called USD Reserve had been rebuilt to $2.55 billion, up from levels that had alarmed analysts in recent weeks.
At current reserve levels, Strategy said it can cover roughly 18 months of dividend costs. If it were to sell the full $1.25 billion in Bitcoin, that coverage would extend to approximately 26 months. The company pledged to maintain at least 12 months of dividend coverage going forward.
Preferred Stock Pressure Sparked the Move
Analysts had urged the company to shore up liquidity after its cash stockpile had shrunk to cover just 14 months of recurring costs. Strategy’s flagship preferred stock, Stretch (STRC), had drifted more than 25% below its $100 par value in recent weeks, falling as low as $71.25 on the Friday before the announcement.
Following Monday’s news, STRC jumped as high as $82.50 in pre-market trading. Strategy also raised STRC’s dividend by 50 basis points to 12%, marking the eighth such hike. The company cautioned it may not raise the dividend rate solely because STRC trades below par.
Strategy’s common stock (MSTR) advanced 5% in pre-market trading to $86.52, according to Yahoo Finance.
Buyback Authority and Equity Guardrails
Alongside the Bitcoin sale provision, the framework authorises Strategy to repurchase up to $1 billion in preferred stock, including Strife (STRF), and a further $1 billion in common stock, using funds separate from the USD Reserve. The buyback program is expected to prioritise STRC initially, with the company noting that purchasing the product at a discount to par could reduce recurring dividend costs.
Strategy also set a new guardrail on equity issuance, stating it will not issue additional common shares to buy Bitcoin unless the company trades at a premium to its Bitcoin holdings. As of Monday, the firm’s mNAV stood at 0.99, a slight discount.
Bitcoin Holdings Unchanged, Paper Losses Widen
Strategy’s Bitcoin stockpile remained unchanged at 847,363 Bitcoin. At Bitcoin’s price of roughly $59,800 at the time of the announcement, those holdings were valued at approximately $51 billion, implying around $13.1 billion in unrealised losses on paper. In less than a year, Strategy has issued more than $10 billion worth of preferred stock across its product range.
“Strategy remains committed to Bitcoin as its primary treasury reserve asset,” co-founder and Executive Chairman Michael Saylor said in a statement. “At the same time, Digital Credit requires liquidity, discipline, and active capital management.” Saylor added that the framework is intended to “strengthen credit quality” and enable the company to “reduce expected preferred stock dividend payments when accretive.”
On the Myriad prediction market, traders assigned a 15% probability that Strategy would hold more than 1 million Bitcoin before the end of 2026, a slight increase from 14.5% odds a week prior.
