Strategy Inc. says it has adopted a Digital Credit Capital Framework that pairs a Board-approved USD Reserve policy with a higher STRC dividend rate, repurchase authorizations for multiple preferred series and its class A common stock, and a BTC Monetization P
On a day marked by another major capital move from Strategy Inc., the company framed its shift in plain terms: keep Bitcoin exposure, but tighten the cash engine that pays dividends and interest.
Strategy announced that it has adopted a Digital Credit Capital Framework intended to strengthen its various series of preferred securities. enhance liquidity. preserve long-term Bitcoin exposure. and support long-term value creation for shareholders. The framework is built around five components. including a Board-approved USD Reserve policy. a revised STRC dividend policy. repurchase programs for Digital Credit Securities and for class A common stock. and a BTC monetization program.
Michael Saylor. Founder and Executive Chairman of Strategy. said in the company’s statement that Strategy remains committed to Bitcoin as its primary treasury reserve asset—while Digital Credit “requires liquidity. discipline. and active capital management.” He said the framework is designed to strengthen credit quality and enable the company to reduce expected preferred stock dividend payments when accretive. while also laying out how Strategy will use its capital management tools without changing its commitment to long-term Bitcoin exposure.
The company’s numbers tell the story of where the pressure points are. Strategy said its USD Reserve is approximately $2.55 billion as of June 28, 2026, including expected cash proceeds from shares sold under its at-the-market offering program that had not yet settled as of that date.
Under the Board-approved USD Reserve Policy, Strategy said the reserve may be used only to support the payment of dividends on its preferred stock and interest on outstanding indebtedness. Any other use requires Board authorization.
Based on current annual expected preferred stock dividend payments and interest expense of approximately $1.76 billion, the company said the $2.55 billion USD Reserve represents about 17.4 months of coverage.
Strategy then added a further constraint: the Board established a policy of maintaining a minimum USD Reserve equal to at least 12 months of current expected annual preferred stock dividend payments and interest expense, with any reduction below 12 months requiring Board authorization.
To connect the reserve to its Bitcoin strategy. Strategy said it intends to maintain liquidity coverage through a combination of the USD Reserve and Board-authorized BTC monetization capacity. Using a $2.55 billion USD Reserve and $1.25 billion of Board-authorized reserve-building BTC monetization capacity. the company said it would have approximately $3.80 billion of total current preferred stock dividend liquidity coverage. That figure. Strategy said. represents approximately 25.9 months of current annual expected preferred stock dividend payments and interest expense—before giving effect to repurchases. future dividend rate changes. changes in expected annual preferred stock dividend payments. taxes. transaction expenses. or market conditions affecting BTC monetization.
Strategy said the USD Reserve may be used as dividends and interest payments come due and may then be replenished through the BTC Monetization Program or other capital markets activity, subject to market conditions and management’s assessment of long-term shareholder value.
The framework’s second major pillar is a change aimed at STRC. Strategy announced that it will increase the regular dividend rate per annum on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC). effective for semi-monthly periods with record dates on or after July 1. 2026. to 12.00%.
The company emphasized that the adjustment will have no effect on any previously declared but unpaid dividends on STRC.
Strategy also tied the dividend change to a trading objective: its corporate objective is for STRC to trade over time in a range of approximately $99 to $100. close to its $100 stated amount. Strategy said the actions announced today are intended to support that objective by strengthening preferred dividend liquidity. improving market confidence in its Digital Credit Securities. and providing additional capital allocation tools.
The company also warned investors not to rely on the target range as a promise. It said STRC’s trading price may vary, including significantly lower, from the $99 to $100 range, and Strategy cannot assure or guarantee investors that STRC will trade in that range or at any particular price.
Going forward, Strategy said it intends to evaluate the STRC dividend rate monthly based on factors including STRC trading levels, market yields, credit spreads, BTC price and volatility, USD Reserve coverage, capital market conditions, and the company’s overall capital structure.
Dividend rate changes, Strategy said, are one tool among several. It said the company may respond to market conditions through USD Reserve management. BTC monetization. Digital Credit Securities repurchases. MSTR common stock repurchases. and other capital allocation actions. Strategy also stressed that it will not necessarily increase the STRC dividend rate solely because STRC trades below its stated amount. and that STRC dividends remain subject to declaration by the Board of Directors or an authorized committee and are not guaranteed.
Beyond dividends and reserves, Strategy laid out two repurchase authorizations within the Digital Credit Capital Framework.
The Digital Credit Securities Repurchase Program would allow Strategy to buy back. in total. up to $1.0 billion aggregate purchase price of its outstanding Digital Credit Securities. Those include STRC; 10.00% Series A Perpetual Strife Preferred Stock (STRF); 10.00% Series A Perpetual Stride Preferred Stock (STRD); and 8.00% Series A Perpetual Strike Preferred Stock (STRK).
Strategy said it currently expects STRC to be the initial priority under the Digital Credit repurchase program if management determines that repurchases are accretive and would strengthen the company’s capital structure.
Repurchases. the company said. may be made from time to time through open-market purchases. block trades. privately negotiated transactions. tender offers. exchange offers. or other legally permissible means depending on market conditions. trading prices. liquidity. applicable legal requirements. and other factors.
Strategy said the repurchase authorization does not obligate the company to acquire any particular amount of securities, has no fixed expiration date, and may be modified, suspended, or terminated at any time.
The company’s rationale was direct: Strategy said it believes repurchases of Digital Credit Securities at significant discounts to stated amount may reduce expected annual dividend payments. strengthen credit quality. and create long-term value for common shareholders. Strategy also said repurchases of Digital Credit Securities will not be funded from the USD Reserve. If it funds such repurchases through BTC sales. those sales would be made under the BTC Monetization Program described in the announcement.
Parallel to that, Strategy said it has established a repurchase program for up to $1.0 billion aggregate purchase price of its class A common stock.
Here too. the company said repurchases may be carried out from time to time through open-market purchases. block trades. privately negotiated transactions. accelerated share repurchase transactions. or other legally permissible means. depending on market conditions. trading prices. liquidity. applicable legal requirements. and other factors. The program carries no obligation to buy any particular amount. has no fixed expiration date. and may be modified. suspended. or terminated at any time.
Strategy said it believes repurchases of its class A common stock may create long-term value for common shareholders when management believes the company’s common stock is trading below intrinsic value. It reiterated that repurchases of class A common stock will not be funded from the USD Reserve. and that if BTC sales are used to fund repurchases. such sales would be made under the BTC Monetization Program.
Phong Le. Strategy’s Chief Executive Officer. said the company is shifting “from one-way capital issuance to active capital management.” He said Strategy intends to move between issuing securities when capital is attractive and repurchasing securities when buybacks are accretive. He described the flexibility as designed to create shareholder value. improve corporate performance. and strengthen the quality and market standing of Strategy’s securities in the eyes of investors.
All of those choices feed into the final major piece of the framework: the BTC Monetization Program.
Strategy said its Board of Directors has authorized a BTC Monetization Program under which the company may sell BTC from time to time for three primary purposes. First, to generate up to $1.25 billion to fund the USD Reserve. Second. to fund preferred stock dividends and interest expense as they become payable or to replenish the USD Reserve after such payments. when management determines it is more advantageous than issuing class A common stock or other capital markets transactions. Third. to fund repurchases of Digital Credit Securities or class A common stock. including related taxes. fees. and transaction expenses. under the repurchase programs.
Any BTC monetization outside those purposes or in excess of the authorizations, Strategy said, would require further Board authorization.
The company said the BTC Monetization Program has no fixed expiration date and may be modified, suspended, or terminated at any time. It also said the program does not obligate Strategy to sell any BTC, fund any dividend payment or interest expense through BTC sales, or repurchase any securities.
Strategy said any BTC monetization would be subject to market conditions, liquidity needs, tax and accounting considerations, applicable legal requirements, and management’s assessment of long-term shareholder value.
The company added that it expects to disclose material BTC monetization and other capital markets activity, including related balance sheet metrics, according to its customary Form 8-K disclosure practices and applicable law.
Andrew Kang. Strategy’s Chief Financial Officer. said “Bitcoin is capital. ” and described the program as giving Strategy flexibility to use a portion of its BTC Reserve to strengthen Digital Credit. fund or replenish the USD Reserve. fund dividend payments and interest expense. and fund accretive repurchases when BTC monetization is more advantageous than issuing common equity. Kang said. based on a $2.55 billion USD Reserve and $1.25 billion of Board-authorized reserve-building BTC monetization capacity. Strategy has approximately 25.9 months of current preferred stock dividend liquidity coverage.
Strategy also addressed how it plans to handle common equity issuance going forward. It said it expects to remain disciplined in its use of common equity issuance. particularly when its common stock trades at or near 1x mNAV per Share. It said future common equity issuance will depend on market conditions. capital needs. trading levels. and management’s assessment of long-term value creation. For the definition of mNAV as used in the release. Strategy directed readers to a link at https://www.strategy.com/notes.
The company issued standard securities language as well. stating that the press release does not constitute an offer to sell or solicitation to purchase any securities in any state or jurisdiction where such offer or sale would be unlawful prior to registration or qualification under securities laws. It said any offer to purchase securities. if commenced. would be made only pursuant to separate offering materials filed or furnished with the Securities and Exchange Commission or otherwise made available as required by applicable law.
Strategy described itself in closing as the world’s first and largest Bitcoin Treasury Company. operating as Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE). It said it pursues financial innovation strategies designed to generate value from its bitcoin holdings. including developing and issuing novel fixed-income instruments that provide investors varying degrees of economic exposure to bitcoin. It also said it is a leader in AI-powered enterprise analytics software, advancing its vision of Intelligence Everywhere™.
The company listed contact information for investor relations: CJ (Chaitanya Jain), Head of Investor Relations, at ir@strategy.com.
Strategy Inc USD Reserve Policy STRC dividend Digital Credit Securities repurchase Bitcoin monetization program preferred stock liquidity BTC monetization MSTR repurchase program capital management