Strategy rolled out a five-part Digital Credit Capital Framework on Monday, building a $2.55 billion USD Reserve, lifting its STRC preferred dividend to 12%, and authorizing bitcoin sales plus two separate $1 billion buyback programs. The moves come as MSTR shares trade near $82 and bitcoin trades around $60,032 per coin after a 30%-plus year-to-date drop.
Strategy is moving to protect its dividend payments rather than just accumulate bitcoin. On Monday morning the company unveiled a five-part Digital Credit Capital Framework that authorizes bitcoin sales, raises its STRC preferred dividend rate, and opens $1 billion buyback programs for both preferred stock and common shares, with bitcoin trading around $60,032 per coin and MSTR shares near $82.
The Tysons Corner, Va.-based company disclosed a USD Reserve of approximately $2.55 billion as of June 28, 2026, a figure that includes expected cash from unsettled at-the-market offering sales. Under a new board-approved policy, the reserve can only pay preferred dividends and interest on outstanding debt; any other use needs board authorization. The board also set a minimum reserve floor of 12 months of coverage.
A reserve to cover the dividends
At current spending rates, the $2.55 billion covers about 17.4 months of Strategy's annual preferred dividend and interest obligations, which total roughly $1.76 billion per year. Founder and executive chairman Michael Saylor said the framework is designed to strengthen credit quality and enable the company to reduce expected preferred stock dividend payments when accretive.
STRC gets a rate hike
Strategy raised the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) from roughly 11.5% to 12.00%, effective for periods with record dates on or after July 1, 2026. The instrument targets a $100 par value but has slid to around $74.57 as bitcoin's 30%-plus year-to-date decline and risk-off sentiment weighed on it. The company said its objective is for STRC to trade between $99 and $100 over time, and it will review the rate monthly.
Bitcoin sales now on the table
The framework also authorizes a BTC Monetization Program that lets Strategy sell bitcoin to build up to $1.25 billion in USD Reserve, fund payments when selling beats issuing stock, and fund buybacks. Combined with the existing reserve, that gives the company about $3.80 billion in total preferred dividend liquidity coverage, or roughly 25.9 months of obligations. According to chief financial officer Andrew Kang: "Bitcoin is capital".
Strategy authorized two separate $1 billion repurchase programs, the first covering its Digital Credit Securities and the second its class A common stock; neither draws on the USD Reserve. The company also said it expects to pull back on common stock issuance, particularly when MSTR trades near 1x mNAV per share. Despite the prospect of BTC sales, bitcoin's price rose a percentage point to $60,625 after Saylor's statement.
Sources: Bitcoin News, Strategy
Trading involves risk.
Risk Disclaimer
