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

Strategy Inc unveiled a Digital Credit Capital Framework that authorizes potential Bitcoin sales of up to $1.25 billion to raise capital, shifting the company from relying solely on issuing stock or debt.

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The plan ties the move to Strategy’s USD Reserve policy, with the reserve described as approximately $2.55 billion as of June 28, 2026, and it frames Bitcoin as deployable capital under narrow rules.

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Benchmark Equity Research reiterated a Buy rating on Strategy’s Class A stock MSTR and maintained a 12-month price target of $570, while Strategy’s MSTR shares rose 12.6% to about $92.70 on Monday.

In the same announcement cycle, Strategy authorized up to $1 billion in repurchases of its Digital Credit Securities and up to $1 billion for class A common stock repurchases, and it set an annual STRC dividend rate of 12.00% effective for record dates on or after July 1, 2026.

CoinDesk said the company emphasized that its Bitcoin Monetization Program “does not obligate it to sell any bitcoin,” with proceeds intended to build or replenish the USD reserve, fund preferred dividends and interest, or finance share repurchases.

The new framework drew mixed reactions as some analysts supported the changes while others questioned the long-term implications for Strategy’s Bitcoin strategy and sustainability.

Benchmark’s analysts said the update transforms Strategy from a "one-way" Bitcoin accumulation vehicle into an active manager of both sides of its balance sheet, and they wrote, "The upshot is that Strategy is now an active manager of both sides of its capital structure."

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Trader and investor Scott Melker said Strategy appears to be making the changes investors wanted to see, but he cautioned that "only time will tell" whether the new framework restores investor confidence.

Arca chief investment officer Jeff Dorman argued that Strategy may need to sell about $2 billion to $3 billion worth of Bitcoin to eliminate a “constant overhang” on the market.

Ripple CEO Brad Garlinghouse criticized the approach, telling CNBC's "Squawk on the Street" that "financial engineering doesn't drive long-term value."

Strategy’s press release said the USD Reserve represents approximately 17.4 months of coverage based on expected annual preferred stock dividend payments and interest expense of approximately $1.76 billion, and it set a minimum USD Reserve equal to at least 12 months of current expected annual preferred stock dividend payments and interest expense.

“Strategy (MSTR) unveiled a new Digital Credit Capital Framework on Monday, introducing a series of capital management initiatives designed to strengthen its preferred securities, preserve long term bitcoin exposure, and improve balance sheet flexibility”

CoinDesk

The company also described total current preferred stock dividend liquidity coverage of approximately 25.9 months, based on a $2.55 billion USD Reserve and $1.25 billion of Board-authorized reserve-building BTC monetization capacity, before giving effect to repurchases, future dividend rate changes, taxes, transaction expenses, or market conditions affecting BTC monetization.

Strategy said it established a repurchase program for up to $1.0 billion aggregate purchase price of its outstanding Digital Credit Securities, with STRC expected to be the initial priority under the Digital Credit repurchase program if management determines repurchases are accretive.

The Block reported that Strategy paused bitcoin purchases last week despite raising $1.15 billion through MSTR share sales, and it said the rebound came as investors digested Michael Saylor’s new capital management framework.

In the same broader cycle, Strategy’s corporate objective was for STRC to trade over time in a range of approximately $99 to $100, and Saylor wrote on X, "Our corporate objective is for STRC to trade over time at $99-$100."