Strategy Inc. Unveils Bitcoin Monetization Plan With $1.25B Cap

Strategy Inc. (Nasdaq: MSTR), the world's largest bitcoin treasury company, announced a Digital Credit Capital Framework on June 28, 2026, authorizing up to $1.25 billion in bitcoin sales to fund dividend payments, interest expense, and share buybacks, according to ZeroHedge. The announcement sent MSTR shares up 6% in pre-market trading and pushed Bitcoin above $60,000, reflecting investor attention to the company's new bitcoin monetization plan and capital management approach.

Key takeaways
Strategy Inc. introduced a Digital Credit Capital Framework authorizing up to $1.25 billion in bitcoin sales for specific corporate purposes.
The company established a $2.55 billion USD reserve to cover 17.4 months of preferred dividend and interest obligations, with a 12-month minimum floor.
Strategy raised the dividend rate on its STRC preferred stock by 50 basis points to 12% per year, effective for record dates on or after July 1, 2026.
The board authorized up to $1 billion in buybacks of Digital Credit Securities and up to $1 billion in common stock repurchases, neither drawing from the USD reserve.

Table of Contents
What the framework includes
USD reserve and liquidity coverage
STRC dividend increase and trading target
Dual buyback programs
Bitcoin monetization program details
What to watch next

What the framework includes

The Digital Credit Capital Framework announced by Strategy Inc. on June 28, 2026, consists of five components, according to the source context. The framework includes a board-approved USD reserve policy, a dividend rate increase on one class of preferred stock, a $1 billion buyback program for digital credit securities, a $1 billion buyback program for common stock, and a bitcoin monetization program that authorizes the sale of BTC to fund company obligations. The announcement was made public earlier on June 28, 2026, and the source context attributes the report to ZeroHedge via BitcoinMagazine.com.

The framework represents what CEO Phong Le described as a shift from one-way capital issuance to active capital management, according to the source context. Le stated that Strategy intends to move between issuing securities when capital is attractive and repurchasing securities when instruments trade at levels that make buybacks accretive. The framework does not obligate the company to sell any bitcoin or execute any specific buyback amount, and both buyback programs can be modified, suspended, or canceled at any time, according to the source context.

USD reserve and liquidity coverage

At the center of the framework is a $2.55 billion USD reserve, consisting of cash and cash equivalents held to cover dividend payments and interest expense on the company's debt, according to the source context. Strategy carries roughly $1.76 billion in annual preferred dividend and interest obligations, which means the current reserve represents 17.4 months of coverage. The board has set a floor requiring the reserve to stay at a minimum of 12 months of coverage at all times, and any reduction below that threshold requires explicit board authorization, according to the source context.

The reserve can only be used for two purposes: paying preferred stock dividends and servicing interest on debt, according to the source context. Any other use of those funds also requires board approval. Beyond the cash reserve, Strategy is counting its bitcoin monetization capacity as part of its liquidity cushion. Combined, the $2.55 billion reserve and $1.25 billion in authorized BTC monetization capacity give the company $3.80 billion in total coverage, the equivalent of 25.9 months of preferred dividend and interest obligations, according to the source context.

STRC dividend increase and trading target

Strategy raised the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, by 50 basis points to 12% per year, according to the source context. The increase takes effect for dividend periods with record dates on or after July 1, 2026. A basis point is one one-hundredth of a percentage point, so the increase moves the rate from 11.5% to 12%, according to the source context.

The company said its target is for STRC to trade between $99 and $100 over time, close to its $100 stated value, and STRC has risen 9% on the news, according to the source context. Strategy said it will evaluate the STRC dividend rate on a monthly basis, taking into account trading levels, credit spreads, bitcoin price and volatility, and the overall state of its balance sheet, according to the source context.

For investors, preferred stock dividend policy can matter because it influences the cost of capital, the attractiveness of the security to income-focused investors, and the company's ability to manage its capital structure over time. The monthly evaluation approach suggests the company intends to adjust the dividend rate dynamically in response to market conditions and balance sheet performance.

Dual buyback programs

The board authorized up to $1 billion in repurchases of its Digital Credit Securities, a category that includes STRC, STRF, STRK, and STRD, four series of preferred stock the company has issued, according to the source context. The board also authorized up to $1 billion in buybacks of its Class A common stock. Neither program obligates the company to purchase any specific amount of securities, and both can be modified, suspended, or canceled at any time, according to the source context.

Repurchases under both programs can be made through open-market purchases, block trades, private negotiations, or tender offers, according to the source context. Neither buyback program will draw from the USD reserve, according to the source context. If Strategy funds buybacks through bitcoin sales, those sales fall under the BTC Monetization Program.

For investors, buyback programs can matter because they may signal management's view on valuation, influence earnings per share through share count reduction, and provide a mechanism for returning capital to shareholders. The dual structure—covering both preferred and common stock—suggests the company intends to manage capital across multiple classes of securities.

Bitcoin monetization program details

The Bitcoin Monetization Program authorizes Strategy to sell BTC for three specific purposes, according to the source context. The company may sell bitcoin to build or replenish the USD reserve up to $1.25 billion, to fund preferred dividends and interest payments when management judges BTC sales more favorable than issuing new stock, and to fund buybacks of preferred or common stock. Any sale outside those three purposes requires a new board vote, according to the source context.

The program does not obligate the company to sell any bitcoin, according to the source context. CFO Andrew Kang stated that the program gives Strategy a tool to use part of its bitcoin reserve without abandoning its core thesis, according to the source context. Kang said, "Bitcoin is capital. This program gives Strategy the flexibility to use a portion of its BTC Reserve to strengthen Digital Credit, fund dividend payments and interest expense, and fund accretive repurchases when BTC monetization is more favorable than issuing common equity," according to the source context.

Founder and Executive Chairman Michael Saylor said bitcoin remains the company's primary treasury asset, and stated, "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," according to the source context.

For readers following broader market updates , the framework represents a notable development in how bitcoin treasury companies manage liquidity and capital structure. The ability to monetize bitcoin for specific corporate purposes while maintaining a primary treasury asset position reflects a balance between operational flexibility and long-term asset accumulation. The framework's emphasis on board-approved limits and specific use cases suggests the company intends to maintain discipline around bitcoin sales while preserving optionality to respond to market conditions.

What to watch next

Investors and market readers may watch for future disclosures regarding the company's use of the bitcoin monetization program, including the timing, size, and purpose of any bitcoin sales executed under the $1.25 billion authorization. The company's monthly evaluation of the STRC dividend rate may provide insight into how management views credit spreads, bitcoin price and volatility, and balance sheet performance over time.

Any changes to the USD reserve level, particularly movements toward or away from the 12-month minimum floor, may signal shifts in the company's liquidity position or capital allocation priorities. Market readers may also monitor the execution of the dual buyback programs, including the mix of preferred versus common stock repurchases and the funding sources used for those buybacks.

The company's public statements and regulatory filings may provide additional detail on how the framework influences capital issuance decisions, preferred stock trading levels, and the overall balance between bitcoin accumulation and active capital management. For readers tracking bitcoin treasury companies, the framework may serve as a reference point for how similar firms manage liquidity, dividend obligations, and the monetization of digital asset reserves.

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