Saylor's Strategy Unlocks the Sell Button: Up to $1.25B in BTC Now on Tap for Buybacks 🍴

Strategy has approved its first formal Bitcoin monetization program, authorizing the Bitcoin treasury firm to sell up to $1.25 billion of the digital asset to fund cash reserves, service preferred dividends and repurchase securities under a newly adopted Digital Credit Capital Framework disclosed in a Monday 8-K filing with the US Securities and Exchange Commission. The framework marks a structural shift from Strategy's long-running practice of accumulating Bitcoin solely through equity and preferred-stock issuance, instead giving management board authorization to liquidate portions of its 847,363 BTC holdings under defined circumstances without requiring approval for each transaction.

The company's USD Reserve stood at $2.55 billion as of June 28, equivalent to roughly 17.4 months of preferred dividend and interest coverage based on annualized obligations of about $1.76 billion. Including the $1.25 billion Bitcoin monetization capacity, Executive Chairman Michael Saylor said total coverage rises to approximately 25.9 months, or up to $3.8 billion. The board also authorized up to $1 billion in repurchases of its Digital Credit Securities and up to $1 billion in buybacks of Class A common stock (MSTR), with no fixed expiration on either program and no obligation to execute purchases. "Strategy remains committed to Bitcoin as its primary treasury reserve asset," Saylor said in a statement. "At the same time, Digital Credit requires liquidity, discipline, and active capital management."

Alongside the framework, Strategy raised the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12% from 11.5%, effective for record dates beginning July 1, and committed to reviewing the rate monthly with the stated objective of supporting trading near par. The company reported no Bitcoin purchases during the week ended Sunday, leaving its holdings unchanged at 847,363 BTC acquired for approximately $64.1 billion at an average price of $75,651 per coin. Strategy disclosed net proceeds of around $1.15 billion from the sale of 12.67 million MSTR shares and noted that any Bitcoin sales outside the board-approved purposes would require additional board approval. "Bitcoin is capital," Saylor said. "Our Digital Credit Capital Framework lets us transform that capital into productive support for shareholder value while preserving our long-term Bitcoin strategy."

President and CEO Phong Le described the move as a transition from primarily raising capital to acquire Bitcoin to actively managing the company's capital structure through both issuance and repurchases, depending on market conditions. Saylor added that "Strategy expects to remain disciplined in its use of MSTR issuance, particularly when the stock trades at or near 1x mNAV."

In market reaction, MSTR shares rose about 5%–6% in pre-market trading to roughly $86.52, while STRC climbed 9%. Bitcoin changed hands near $60,018–$60,500, modestly above recent lows. Strategy's filing noted that selling the full $1.25 billion would equate to roughly 20,800 BTC at current prices, or about 2.5% of its total holdings.