Strategy Authorizes Up To $1.25 Billion Bitcoin Sales Under Digital Credit Capital Framework

Strategy (MSTR) authorized a new “Digital Credit Capital Framework” that gives the company flexibility to sell a portion of its bitcoin holdings to strengthen its balance sheet, support its perpetual preferred securities, and fund stock buybacks.

“- Strategy shares are climbing with conviction”

Benzinga

The board authorization includes selling up to $1.25 billion of bitcoin to build the company’s USD Reserve, which is used to fund preferred stock dividends and interest payments, and it also allows bitcoin sales to replenish the reserve after distributions are made.

Benzinga

The framework also authorizes Strategy to sell bitcoin to finance up to $1 billion of Digital Credit Securities repurchases and up to $1 billion of Class A common stock buybacks, while any bitcoin monetization beyond those purposes would require additional board approval.

In its press release, Strategy said its USD Reserve is approximately $2.55 billion as of June 28, 2026, and that based on current annual expected preferred stock dividend payments and interest expense of approximately $1.76 billion, the reserve represents approximately 17.4 months of coverage.

Strategy’s Founder and Executive Chairman Michael Saylor said, “At the same time, Digital Credit requires liquidity, discipline, and active capital management.”

Alongside the bitcoin monetization program, Strategy said 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%.

Strategy’s press release set a corporate objective for STRC to trade over time in a range of approximately $99 to $100, close to its $100 stated amount, and said the actions announced today are intended to support that objective by strengthening preferred dividend liquidity and improving market confidence.

Bitbo

The company also established a repurchase program for up to $1.0 billion aggregate purchase price of its outstanding Digital Credit Securities, including STRC, STRF, STRD, and STRK, with STRC expected to be the initial priority if management determines repurchases are accretive.

In a separate explanation of the framework, CoinDesk said the program does not set a fixed limit on bitcoin sales and that management has board approval to do so when it determines such sales are more advantageous than issuing Class A common stock or pursuing other financing options.

CoinDesk added that Strategy emphasized it is not obligated to sell any bitcoin, even as it received board approval to monetize its bitcoin treasury for specific purposes.

Strategy described the USD Reserve policy as Board-approved, saying the USD Reserve may be used only to support the payment of dividends on Strategy’s preferred stock and interest on outstanding indebtedness, and that any other use will require Board authorization.

Based on a $2.55 billion USD Reserve and $1.25 billion of Board-authorized reserve-building BTC monetization capacity, Strategy said it would have approximately $3.80 billion of total current preferred stock dividend liquidity coverage, representing approximately 25.9 months of current annual expected preferred stock dividend payments and interest expense.

The company also said it will maintain a minimum USD Reserve equal to at least 12 months of current expected annual preferred stock dividend payments and interest expense, and that any reduction below 12 months will require Board authorization.

CoinDesk reported that MSTR shares were up 3% following the announcement while bitcoin trades below $60,000, and it noted that Binance remains crypto’s leading exchange expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.

In the same coverage, CoinDesk said the filing does not set a fixed limit on bitcoin sales and instead authorizes BTC monetization for specific purposes, including selling up to $1.25 billion to build the USD Reserve.