In a significant move aimed at fortifying its financial strategies, Strategy Inc, a leader in Bitcoin Treasury management, has introduced a comprehensive Digital Credit Capital Framework. This innovative framework is designed to enhance liquidity, protect long-term exposure to Bitcoin, and promote shareholder value through several targeted initiatives.
The framework comprises five key components: a Board-approved USD reserve policy, a revised dividend strategy for its STRC series, a Digital Credit Securities repurchase program, a stock repurchase initiative for its Class A shares, and a Bitcoin monetization program.
Michael Saylor, the company’s Founder and Executive Chairman, reaffirmed Strategy’s commitment to Bitcoin as its primary treasury reserve asset, emphasizing that effective capital management is vital for maintaining liquidity and financial discipline. The framework aims to improve credit quality and facilitate reduced dividend payments for preferred stock when advantageous.
As of June 28, 2026, Strategy’s USD Reserve stands at approximately $2.55 billion, which comprises anticipated cash proceeds from a recent share offering. Under the new reserve policy, the USD Reserve will exclusively support dividend payments for preferred stock and the servicing of outstanding debt, with any other expenditures requiring Board authorization. This reserve provides approximately 17.4 months of coverage for the company’s expected annual preferred stock dividend payments and interest expenses, which total around $1.76 billion.
The company is also implementing an increase in its STRC dividend rate to 12% per annum, effective from July 1, 2026. This initiative aims to support the trading stability of STRC, which the company desires to hover around its stated total of $100. While aiming to foster confidence in its Digital Credit Securities, Strategy cautions that trading prices may fluctuate significantly.
Further enhancements include the establishment of a repurchase program for up to $1 billion of various Digital Credit Securities, prioritizing STRC. Strategy expects to conduct these repurchases through various legal means, adapting to market conditions.
In addition, a separate repurchase program for up to $1 billion worth of its Class A common stock has been announced. Both programs will not utilize the USD Reserve and will potentially involve reallocation through the Bitcoin sales outlined in the new BTC Monetization Program.
The BTC Monetization Program gives Strategy the flexibility to liquidate portions of its Bitcoin holdings to fund its USD reserve or support dividend payments and stock repurchases when deemed advantageous compared to other financing methods. The Board’s authorization allows for the generation of up to $1.25 billion from Bitcoin sales, depending on market conditions and the company’s liquidity requirements.
Phong Le, the Chief Executive Officer, highlighted the evolution of Strategy from one-way capital issuance to an approach focused on active capital management. The new framework intends to create shareholder value, improve corporate performance, and enhance the reputation of its securities among investors.
The comprehensive measures not only reinforce Strategy’s commitment to disciplined capital usage but also aim to provide investors with transparency and confidence in the evolving landscape of digital finance.
