Saylor Finally Reads the Memo: Strategy Green-Lights $1.25B Bitcoin Fire Sale 💸

Strategy unveiled a Digital Credit Capital Framework on Monday, June 29, 2026, authorizing management for the first time to sell portions of its 847,363 Bitcoin holdings to fund dividends, shore up cash and repurchase its own securities. The board approved a Bitcoin Monetization Program permitting sales of up to $1.25 billion in BTC to build and replenish a USD Reserve, cover preferred stock dividends and interest obligations, and finance authorized buybacks.

Co-founder and Executive Chairman Michael Saylor framed the shift as continuity rather than retreat. "Strategy remains committed to Bitcoin as its primary treasury reserve asset," Saylor said. "At the same time, Digital Credit requires liquidity, discipline, and active capital management." In a separate statement, Saylor added: "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." President and CEO Phong Le described the framework as a move from "primarily issuing capital to actively managing the capital structure through both issuance and repurchases," depending on market conditions.

The company disclosed that its USD Reserve has grown to $2.55 billion, equivalent to roughly 17.4 months of preferred dividend and interest coverage. Combined with the $1.25 billion monetization capacity, Saylor said total coverage reaches up to $3.8 billion, or approximately 25.9 to 26 months. The board also authorized up to $1 billion in repurchases of Digital Credit Securities, including STRC, STRF, STRD and STRK, and up to $1 billion in buybacks of Class A common stock (MSTR). 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, 2026, with the rate to be reviewed monthly.

Strategy reported no Bitcoin purchases during the week ended Sunday, leaving its holdings unchanged at 847,363 BTC acquired for approximately $64.1 billion to $64.5 billion at an average price of $75,651 per coin. The company also disclosed raising roughly $1.15 billion in net proceeds through the sale of 12.67 million MSTR shares. In afternoon trading, MSTR was up roughly 5% to 6% in the pre-market and about 3% on the session at $86.52, while STRC climbed about 9% to 12%. Bitcoin changed hands near $59,800 to $60,500, down roughly 0.5% over 24 hours, according to CoinGecko and TradingView data.

The framework follows weeks of pressure on Strategy's preferred stack, with STRC dropping as low as $71.25 on Friday, a 28.75% discount to par, and the company's modified net asset value (mNAV) falling below 1 for the first time on June 27. Grayscale research head Zach Pandl had publicly urged Strategy to sell $3 billion in Bitcoin to restore confidence. Strategy emphasized that the monetization program does not obligate it to sell any BTC and that any sales beyond the approved purposes would require additional board authorization.