Saylor Finally Reads the Fine Print on His Own Bitcoin

Strategy (MSTR) unveiled a "Digital Credit Capital Framework" on June 29, 2026, formally authorizing the Bitcoin treasury firm to sell up to $1.25 billion of its BTC holdings to fund dividends, shore up cash reserves and finance share buybacks, while keeping the asset as its primary treasury reserve. Co-founder and Executive Chairman Michael Saylor framed the move as a necessary evolution in how the company manages capital. "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 said Strategy is shifting from "primarily issuing capital to acquire Bitcoin" toward "actively managing our capital structure through both issuance and repurchases, depending on market conditions."

The framework includes a board-approved Bitcoin Monetization Program permitting BTC sales of up to $1.25 billion to build the company's USD Reserve, pay preferred stock dividends and interest, or fund authorized repurchases. Any BTC sale outside those defined purposes would require additional board approval, and Strategy emphasized it is not obligated to sell any Bitcoin under the program. If the full $1.25 billion were monetized at current prices, Strategy would need to sell roughly 20,800 BTC, or about 2.5% of its 847,363 BTC holdings, accumulated at an average price of $75,651 per coin for approximately $64.5 billion.

Strategy disclosed its USD Reserve has grown to approximately $2.55 billion, which the company said covers about 17.4 months of preferred dividend and interest obligations at an estimated annual run rate of roughly $1.76 billion. Combined with the authorized Bitcoin monetization capacity, Saylor said total dividend coverage rises to approximately $3.8 billion, or nearly 26 months. The board adopted a reserve policy requiring a minimum of 12 months of coverage unless the board approves otherwise. The board also authorized up to $1 billion of Digital Credit Securities repurchases and up to $1 billion of Class A common stock buybacks under separate programs with no fixed expiration date.

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 dividend periods beginning July 1, 2026, with the rate to be reviewed monthly to support trading near the $100 stated amount. Strategy also reported it did not purchase any Bitcoin during the week ended Sunday, leaving holdings at 847,363 BTC, and disclosed approximately $1.15 billion in net proceeds from selling 12.67 million MSTR shares during the period. "Strategy expects to remain disciplined in its use of MSTR issuance, particularly when the stock trades at or near 1x mNAV," Saylor added.

Markets reacted to the announcement with MSTR shares rising roughly 5–6% in pre-market trading to about $86.52, while STRC jumped 9% and Bitcoin gained modestly to around $60,500, up from $59,800 a day earlier.