In a significant move aimed at enhancing investor returns, Strategy has announced a new Capital Plan that will elevate the annual dividend rate on its STRC preferred stock to 12%. This change, effective for dividend periods beginning July 1, comes as the company solidifies its financial position, with a USD reserve currently estimated at approximately $2.55 billion. This reserve is projected to be sufficient to cover the company’s preferred dividend and interest obligations for around 17.4 months.
To further strengthen its market presence, the company’s board has authorized the potential buyback of up to $1 billion in Digital Credit Securities, as well as an additional $1 billion for repurchases of its Class A common stock. These buyback programs do not have a set expiration date and will be executed based solely on prevailing market conditions and management’s assessment of the value added from repurchasing shares.
In a forward-thinking initiative, Strategy has approved a Bitcoin Monetization Program, allowing the company to sell Bitcoin at its discretion. This program opens up the possibility for using proceeds to replenish its USD reserve, fund preferred dividends, or facilitate share buybacks. However, the company has made it clear that there is no obligation to sell any Bitcoin, maintaining flexibility in its asset management strategy.
Michael Saylor emphasized that this new framework bolsters Strategy’s credit profile while ensuring that Bitcoin remains the primary treasury asset for the organization. Strategy’s CEO, Phong Le, described this approach as a transition from merely issuing capital to actively managing the balance sheet, tailoring decisions on issuance and buybacks to current market conditions.
In a related highlight, Saylor shared a comprehensive chart detailing Strategy’s Bitcoin acquisition history, showcasing a total of 847,363 Bitcoins purchased for $50.88 billion as of June 28, spread over 113 separate purchase events at an average cost of $75,653 per Bitcoin. According to the chart, there has been aggressive accumulation through 2024 and 2025, with an upward trend in the average purchase price.
Despite recent market fluctuations, Saylor indicated a commitment to continue these purchases, suggesting that the company remains focused on its long-term strategy.
On a more concerning note, MSTR has seen its stock plunge significantly, currently trading 53.5% below its 200-day moving average. The stock price has broken through a critical demand zone established since early 2025, and is now testing lower support levels between $65 and $80. The Relative Strength Index (RSI) sits at 27.85, indicating that MSTR is in oversold territory. A rebound above the $100 zone would target price levels of $114.50 and then $133.93, while a decline below $80 could pave the way for further losses, potentially reaching as low as $65 to $70.
