Strategy Inc., formerly MicroStrategy, announced a new Digital Credit Capital Framework aimed at strengthening its Digital Credit Securities and improving liquidity. This framework includes a combined repurchase program for up to $2 billion of its outstanding Digital Credit Securities and Class A common stock. Specifically, the company authorized up to $1 billion for repurchasing its Digital Credit Securities, including various series of preferred stock like STRC, and another $1 billion for its Class A common stock.
Central to this new framework is a Bitcoin Monetization Program, which allows Strategy to sell Bitcoin from its reserves for three primary purposes: to fund the USD Reserve (up to $1.25 billion), to cover preferred stock dividends and interest expenses, and to fund the aforementioned repurchase programs. This program provides flexibility for capital management, leveraging a portion of its approximately 847,363 Bitcoin holdings, valued at $50.7 billion, despite facing over $13 billion in unrealized losses on these holdings. As of June 28, 2026, Strategy's USD Reserve stands at $2.55 billion, with an additional $1.25 billion in authorized reserve-building capacity through Bitcoin monetization, providing roughly 25.9 months of liquidity coverage for preferred stock dividends and interest expenses.
In conjunction with these announcements, Strategy increased the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12.00% effective July 1, 2026. This move, along with the buyback authorizations and Bitcoin monetization, is intended to reassure investors as the company's preferred securities had been trading below their stated values. Following the news, Strategy's Class A common stock (MSTR) rose 3.9% to $85.52 in early market trading, while its distressed STRC preferred stock climbed to $81, trading approximately 5% higher on the news. The company, led by Executive Chairman Michael Saylor and CEO Phong Le, aims to move from one-way capital issuance to active capital management to create shareholder value and strengthen its market standing.
