Strategy Inc. adopted a Digital Credit Capital Framework on June 29, 2026 that formally authorizes Bitcoin sales for the first time since the company began accumulating the asset in 2020. The authorization covers reserve funding, preferred dividend payments and buybacks. It is not a confirmed sale, and Strategy is not required to execute any Bitcoin transactions under it.
Bitcoin sale authority covers three uses
The five-part framework authorizes up to $1.25 billion in Bitcoin sales to fund Strategy's USD reserve. Separately, it permits Bitcoin sales to cover preferred dividend payments and fund two $1 billion repurchase programs, one for digital credit securities and one for MSTR common stock. Total potential Bitcoin monetization across all purposes could exceed that $1.25 billion reserve tranche, per CoinDesk.
The framework sets a $2.55 billion USD cash reserve, covering approximately 17.4 months of combined preferred dividend and debt interest obligations, above a board-mandated 12-month floor. It also raises the annual STRC preferred stock dividend from 11.5% to 12.0%, effective July 1, per Investing.com. The reserve stood at $1.4 billion as recently as June 21, per The Block.
USD reserve funds are restricted to preferred dividends and debt interest and may not be used for buybacks. CEO Phong Le described the move as Strategy "evolving from one-way capital issuance to active capital management," per Investing.com.
Strategy holds 847,363 BTC after purchase pause
Strategy holds 847,363 BTC acquired at an average cost of $75,651 per coin, 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 below $60,000 at the time of the announcement, the position carried roughly a $13 billion paper loss. The $1.25 billion reserve-funding tranche would require selling approximately 20,800 BTC at those prices, about 2.5% of total holdings, per CoinDesk.
STRC and MSTR pressure preceded capital shift
STRC preferred shares had fallen to $71.25, roughly 29% below their $100 par value, before recovering to $74.57 ahead of the announcement, per 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: "At the same time, Digital Credit requires liquidity, discipline, and active capital management. This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive. This framework also sets out how we plan to use our capital management toolkit while maintaining our commitment to long-term Bitcoin exposure," per CoinDesk.