Points of Focus

• Strategy formalized Bitcoin monetization, allowing BTC sales alongside a new digital credit capital framework.
• The company raised STRC’s dividend to 12% and authorized $2 billion in share and preferred stock buybacks.
• Strategy holds 847,363 BTC while maintaining $2.55 billion in reserves and 25.9 months of dividend liquidity coverage.

Strategy introduced its digital credit capital framework on June 29, formalizing a shift from passive Bitcoin (BTC) accumulation to active balance-sheet management that the company had been executing informally since the 32-BTC sale in May.

Strategy shifts from Bitcoin accumulation to capital management

The framework has five components:

• A board-approved USD Reserve Policy that restricts the company’s $2.55-billion cash reserve to preferred dividends and debt interest unless the board approves other uses
• A Dividend Rate Adjustment Policy, under which STRC’s annual dividend rate increased from 11.5% to 12%, effective July 1, after the preferred stock traded as much as 28.75% below par last week
• A $1-billion Digital Credit Securities Repurchase Program, with STRC receiving priority where purchases are considered accretive
• A $1-billion Class A Common Stock Repurchase Program
• A Bitcoin Monetization Program authorizing BTC sales for three board-approved purposes.

Strategy announces a Digital Credit Capital Framework designed to strengthen Digital Credit, enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation. $MSTR $STRC https://t.co/AUoUCtem53

— Michael Saylor (@saylor) June 29, 2026

Neither buyback program is funded from the USD reserve. Neither obligates Strategy to make purchases. Both can be modified or terminated without notice. The BTC monetization program similarly carries no obligation to sell any bitcoin.

Strategy chief financial officer Andrew Kang framed the shift directly. “Bitcoin is capital,” he 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.”

The numbers behind the framework

Strategy holds 847,363 BTC as of June 28, with no additional purchases during the week. Bitcoin trades near $59,850 at the time of writing, below Strategy’s average acquisition cost of approximately $75,646 per coin, leaving the company with over $13 billion in unrealized losses on its primary asset.

Combined, the $2.55-billion USD reserve and $1.25-billion BTC monetization authorization give Strategy $3.8 billion in total preferred dividend liquidity coverage, representing 25.9 months of current obligations. The board minimum of 12 months means management has approximately 13.9 months of buffer above the floor before the framework’s own constraints are triggered.

During the week of June 22-28, Strategy sold 12.7 million MSTR shares through its ATM offering, raising $1.1 billion in net proceeds. No preferred securities were issued in the same period.

The framework arrives 48 hours after Ripple CEO Brad Garlinghouse called STRC’s discount to par “a pretty damning indictment” on CNBC, and Peter Schiff accused Strategy’s Michael Saylor of making materially false statements by describing STRC as carrying no volatility.

"I think team Michael Saylor wasn't focused on the right stuff, and that has hurt the overall market."@Ripple CEO @bgarlinghouse pulls no punches laying blame for the recent volatility in crypto:https://t.co/P0QoKdPAyv

— Squawk on the Street (@SquawkStreet) June 29, 2026

Neither Saylor nor the company directly addressed those characterizations in the framework announcement.