Strategy Inc. on June 29, 2026 adopted a Digital Credit Capital Framework that formally authorized selling Bitcoin for the first time since the company began accumulating the asset in 2020, with a BTC Monetization Program setting a ceiling of $1.25 billion in proceeds.

The framework is Strategy’s answer to pressure on its capital structure, not a confirmed Bitcoin sale. It sets a cash reserve floor, raises the STRC preferred stock dividend, and gives the company authority to buy back common stock and digital credit securities while keeping long-term Bitcoin exposure.

Digital Credit Capital Framework sets reserve and buybacks

The five-part framework sets a $2.55 billion USD cash reserve, raises the STRC preferred stock annual dividend from 11.5% to 12% effective July 1, and authorizes two $1 billion repurchase programs: one for digital credit securities and one for common stock, according to Investing.com. CEO Phong Le described the move as Strategy “evolving from one-way capital issuance to active capital management.”

The $2.55 billion reserve covers approximately 17.4 months of combined preferred dividend and interest obligations, above a board-mandated 12-month floor. It was $1.4 billion as recently as June 21, per The Block.

USD reserve funds are restricted to preferred dividends and debt interest. They may not be used for buybacks.

Bitcoin holdings stay flat after purchase pause

Strategy holds 847,363 BTC acquired at an average cost of $75,651 per coin, for a total outlay of roughly $64.1 billion. The company acquired no Bitcoin in the week ending June 28 despite raising $1.15 billion through stock sales that week, per The Block.

With Bitcoin trading below $60,000 at the time of the announcement, the position carried roughly a $13 billion paper loss.

The $1.25 billion monetization ceiling would require selling approximately 20,800 BTC at current prices, about 2.5% of total holdings, per CoinDesk. The company is not required to execute any sales.

STRC pressure forced capital structure response

STRC preferred shares had fallen to $71.25, roughly 29% below their $100 par value, before recovering to $74.57 ahead of the announcement, according to The Block. MSTR common shares fell 30% over five days to $82.31, down 82% from their July 2025 peak of $455.90.

Michael Saylor said the framework means “Digital Credit requires liquidity, discipline, and active capital management. This framework strengthens credit quality while maintaining long-term Bitcoin exposure,” per CoinDesk.