Strategy (formerly MicroStrategy) has announced a comprehensive Digital Credit Capital Framework to strengthen its preferred securities, enhance liquidity, and preserve long-term Bitcoin exposure. The framework includes five key components:
USD Reserve Policy
Strategy holds a $2.55 billion USD Reserve as of June 28, 2026, which can only be used for preferred stock dividends and interest payments unless authorized otherwise. This covers 17.4 months of expected annual payments of $1.76 billion. The company aims to maintain at least 12 months of coverage, with additional $1.25 billion in BTC monetization capacity bringing total coverage to 25.9 months.
STRC Dividend Policy
The dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) will increase to 12.00% effective July 1, 2026. Strategy aims to keep STRC trading near its $100 stated amount and will evaluate the dividend rate monthly based on market conditions, BTC price, and credit spreads.
Digital Credit Securities Repurchase Program
Up to $1.0 billion in repurchases of its Digital Credit Securities (STRC, STRF, STRD, STRK) is authorized, with STRC as the initial priority. Repurchases at discounts to stated amount could reduce dividend payments and strengthen credit quality.
MSTR Repurchase Program
A separate $1.0 billion repurchase program for class A common stock (MSTR) is authorized, aimed at creating long-term value when the stock trades below intrinsic value.
BTC Monetization Program
The Board authorized selling BTC for three purposes: funding the USD Reserve (up to $1.25 billion), paying dividends and interest, and funding repurchases of Digital Credit Securities or common stock. This gives Strategy flexibility to use its BTC holdings as capital.
CEO Phong Le stated, "Strategy is evolving from one-way capital issuance to active capital management." CFO Andrew Kang emphasized, "Bitcoin is capital," highlighting the ability to use BTC to strengthen Digital Credit.
This framework marks a significant shift for Strategy, moving from pure Bitcoin accumulation to active capital management while maintaining its core Bitcoin treasury strategy.
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!