Strategy Inc. (MSTR) announced on June 29, 2026, a new Digital Credit Capital Framework aimed at preserving its Bitcoin exposure while creating liquidity to service preferred dividends, interest and share repurchases. The package combines a board-approved USD reserve, revised preferred dividend mechanics, repurchase authorisations and a $1.25 billion Bitcoin monetization cap.
The framework formalises how the company intends to fund cash obligations without immediate, ad hoc sales of its primary treasury asset, signalling a shift toward active capital management alongside continued Bitcoin conviction.
How the framework is structured
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 $STRChttps://t.co/P770rd7fva
— Strategy (@Strategy) June 29, 2026
The announcement follows months of speculation over how the company would fund preferred stock dividends and other financial obligations without being forced to sell Bitcoin during unfavorable market conditions.
At the heart of the new framework is a board-approved $2.55 billion cash reserve. According to Strategy, the reserve is sufficient to cover roughly 17 months of preferred dividends and interest payments, although the company will maintain a policy of holding at least 12 months of liquidity at all times.
To build that reserve, the board has authorized the company to monetize up to $1.25 billion worth of Bitcoin. Strategy emphasized that this is not an immediate sale program but rather a discretionary tool that management can use when market conditions are favorable. Michael Saylor reaffirmed that Bitcoin will remain the company’s primary treasury asset, stressing that the objective is to improve capital management rather than reduce BTC exposure.
The framework also introduces measures aimed at strengthening Strategy’s capital structure. The company increased the annual dividend on its Series A Perpetual Stretch Preferred Stock (STRC) to 12%, with the rate subject to monthly reviews based on Bitcoin volatility and broader market conditions.
In addition, Strategy authorized up to $1 billion in repurchases of its preferred securities (STRC, STRF, STRD, and STRK), as well as another $1 billion share buyback program for its Class A common stock. The company said these buybacks will be executed when management believes the shares are trading below their intrinsic value.
The new financial framework comes as Strategy faces growing scrutiny from investors. While the company remains the world’s largest corporate holder of Bitcoin—with more than 600,000 BTC on its balance sheet—it also carries significant financial obligations tied to the debt and preferred equity it has issued to finance its aggressive Bitcoin acquisition strategy.
With this move, Strategy is sending a clear message to the market: it remains firmly committed to Bitcoin, but intends to manage its balance sheet more proactively, reducing the need for emergency funding decisions during periods of heightened market volatility.
