Strategy Launches Bitcoin Monetization Program, Authorizes $2 Billion in Buybacks
Strategy, the corporate Bitcoin treasury giant formerly known as MicroStrategy, announced on June 29, 2026, a new Digital Credit Capital Framework that includes a Bitcoin Monetization Program, authorization for $2 billion in share buybacks, and an increase in its preferred stock dividend from 11% to 12%. The moves signal a strategic shift toward more active balance sheet management while maintaining its core Bitcoin exposure.
New Framework Enables Selective Bitcoin Sales
The Digital Credit Capital Framework gives Strategy the flexibility to sell portions of its Bitcoin holdings when management determines it is more advantageous than issuing new common shares. The company said proceeds from such sales will primarily bolster its USD Reserve, which stood at approximately $2.55 billion as of June 28, 2026. That reserve is earmarked for paying preferred stock dividends and interest on existing debt, with any other use requiring board approval.
Also read: Bitcoin Flashes a Rare Signal That Marked the Last Three Market Bottoms
Strategy also confirmed that its board authorized up to $1.25 billion in potential Bitcoin sales. The company emphasized that it will maintain at least 12 months of expected preferred dividend payments and interest expenses in its USD Reserve, and any drop below that threshold will also need board sign-off.
$2 Billion in Buybacks and Higher Dividend
Alongside the capital framework, Strategy’s board approved $1 billion in repurchases of its Digital Credit Securities and another $1 billion for buybacks of MSTR Class A common stock. The company clarified that these buybacks will not be financed directly from the USD Reserve.
Also read: MSTR Market Value Falls Below Strategy's $51B Bitcoin Holdings as Dilution Fears Mount
In a move to boost investor confidence, Strategy raised the annual dividend yield on its STRC preferred shares from 11% to 12%. Chief Financial Officer Andrew Kang said the new program provides greater flexibility by allowing the company to use part of its Bitcoin holdings when it offers a better financial outcome than issuing additional equity.
Liquidity Position and Bitcoin Holdings
Strategy currently holds 846,842 bitcoins in its corporate treasury. The company estimates that its $2.55 billion USD Reserve, combined with the $1.25 billion Bitcoin monetization capacity, provides approximately $3.80 billion in total liquidity coverage. Based on current annual preferred dividend payments and interest expenses of roughly $1.76 billion, that liquidity equates to about 25.9 months of coverage.
“Bitcoin continues to be a key component of the company’s capital strategy,” Kang said in a statement. The new framework, he added, is designed to strengthen Strategy’s capital structure while maintaining flexibility during changing market conditions.
Frequently Asked Questions
What is the Bitcoin Monetization Program announced by Strategy?
It is a new program that allows Strategy to sell some of its Bitcoin holdings to create cash reserves, which can be used to pay preferred stock dividends, interest payments, and fund share repurchases.
How much did Strategy authorize for share buybacks?
The board approved up to $2 billion in total buybacks: $1 billion for Digital Credit Securities and $1 billion for MSTR Class A common stock.
What is the new dividend rate for STRC preferred shares?
Strategy raised the annual dividend yield on STRC from 11% to 12% to enhance returns for preferred shareholders.
How much Bitcoin does Strategy currently hold?
As of the announcement, Strategy holds 846,842 bitcoins in its corporate treasury.
