Saylor's $1.25B Bitcoin Garage Sale Comes With a Buyback Receipt 🧾

Strategy unveiled a new Digital Credit Capital Framework on Monday that allows the Bitcoin treasury firm to monetize up to $1.25 billion of its holdings to fund dividends, rebuild cash reserves and repurchase securities, marking the first formal mechanism through which the company can sell Bitcoin rather than only accumulate it. The board approved the framework, which also authorizes up to $1 billion in buybacks of Digital Credit preferred securities and up to $1 billion in repurchases of Class A MSTR common stock. "Strategy remains committed to Bitcoin as its primary treasury reserve asset," co-founder and Executive Chairman Michael Saylor said in a statement. "At the same time, Digital Credit requires liquidity, discipline, and active capital management." Saylor added that the framework is intended to "strengthen credit quality" and enable Strategy to "reduce expected preferred stock dividend payments when accretive." Strategy also raised the regular dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock ($STRC) to 12.00% from 11.5%, effective for record dates beginning July 1, 2026, with management saying it will review the rate monthly.

Alongside the framework, Strategy disclosed that its USD Reserve had grown to $2.55 billion as of June 28, covering roughly 17.4 months of preferred dividend and interest obligations. Including the $1.25 billion Bitcoin monetization capacity, the company estimates dividend and interest coverage could extend to approximately 25.9 months. President and CEO Phong Le said Strategy is evolving beyond raising capital solely to acquire Bitcoin toward actively managing its capital structure, while Saylor commented, "Bitcoin is capital. Our Digital Credit Capital Framework lets us transform that capital into productive support for shareholder value while preserving our long-term Bitcoin strategy."

The company reported no Bitcoin purchases during the week ended Sunday, leaving holdings unchanged at 847,363 BTC acquired for a combined $64.5 billion, at an average of $75,651 per coin. At the same time, Strategy disclosed net proceeds of approximately $1.15 billion from the sale of 12.67 million MSTR shares. Shortly after Monday's announcement, Bitcoin ($BTC) changed hands near $60,018, while Strategy's shares advanced more than 5% in pre-market trading to $86.52. The framework follows weeks of pressure on $STRC, which fell to $71.25 on Friday for a 28.75% discount to par, and arrives as Grayscale research head Zach Pandl last week publicly suggested Strategy should sell $3 billion in Bitcoin to restore confidence.