Saylor's Strategy Goes Both Ways: $1.25B Bitcoin Sell Cap Meets $2B Buyback Bazooka 💼

Strategy adopted a new "Digital Credit Capital Framework" on Monday, formally authorizing the Bitcoin treasury firm to sell up to $1.25 billion of its holdings to fund cash reserves, service dividends and finance share repurchases. The board simultaneously greenlit up to $1 billion in repurchases of its Digital Credit preferred securities and up to $1 billion in buybacks of its Class A common stock, while raising the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock ($STRC) to 12% from 11.5%, effective for dividend periods beginning July 1.

"Bitcoin is capital," Executive Chairman Michael Saylor said in the announcement. "Our Digital Credit Capital Framework lets us transform that capital into productive support for shareholder value while preserving our long-term Bitcoin strategy." Saylor also said the framework is intended to "strengthen credit quality" and enable Strategy to "reduce expected preferred stock dividend payments when accretive," adding that "Strategy remains committed to Bitcoin as its primary treasury reserve asset." President and CEO Phong Le described the move as a shift from primarily issuing capital to actively managing the company's capital structure through both issuance and repurchases, depending on market conditions.

The company's USD Reserve stood at $2.55 billion as of June 28, covering roughly 17.4 months of preferred dividend and interest obligations, with Strategy estimating that combined Bitcoin monetization capacity and existing reserves would extend coverage to approximately 25.9 months. The reserve can only be used for those payments and must be maintained at a minimum of 12 months unless the board approves otherwise. Strategy also reported it made no Bitcoin purchases during the week ended Sunday, leaving holdings unchanged at 847,363 BTC acquired for a combined $64.1 billion (one source cites approximately $64.5 billion) at an average of $75,651 per coin, and disclosed raising around $1.15 billion in net proceeds by selling 12.67 million $MSTR shares.

At last look, $BTC changed hands around $59,800-$60,500, down 0.5% over the prior day per CoinGecko data, while $MSTR shares advanced roughly 5%-7% in pre-market trading to $86.52 according to Yahoo Finance, and $STRC rose 9%. The disclosure comes after $STRC fell as low as $71.25 on Friday, a 28.75% discount to par according to TradingView data, and after Grayscale research head Zach Pandl last week said Strategy should sell $3 billion in Bitcoin to restore confidence.