Saylor's New Math: Sell 21K BTC, Buy Back Trust 🧮

Strategy (MSTR) snapped a nine-day losing streak on Monday after the Bitcoin treasury firm introduced a "Digital Credit Capital Framework," sending its Class A shares up 12.6% to $92.68 and its Stretch (STRC) preferred shares up 12.2% to $83.67, according to Yahoo Finance. The framework authorizes potential Bitcoin sales of up to $1.25 billion — equal to roughly 21,082 BTC at current prices, or about 2.5% of the company's total holdings of 847,363 BTC, according to CoinGecko and company disclosures. The board-approved program is designed to fund the firm's USD Reserve, make payouts on products such as STRC, or repurchase common and preferred securities during "market dislocations."

The company indicated it could generate $1.25 billion in proceeds for its cash cushion, noting that common shares would only be issued when the company trades at a premium to enterprise value. Strategy also said its USD Reserve had expanded to $2.55 billion and disclosed that the STRC dividend had been raised for an eighth time, putting the product on track to deliver 12% annually across twice-monthly distributions. STRC had fallen as low as $71.25 last week, well below its $100 par value, the threshold above which Strategy typically issues more shares to purchase Bitcoin.

Benchmark-StoneX analyst Mark Palmer reiterated a "Buy" rating and $570 price target, calling the framework "robust" and a "direct, point-by-point answer to the concerns investors have been voicing." "The upshot is that Strategy is now an active manager of both sides of its capital structure, an approach that we view as a significant positive for its shareholders," Palmer wrote. Strategy Executive Chairman and co-founder Michael Saylor also outlined the changes.

The company has previously sold Bitcoin, including 32 BTC for $2.5 million in May 2026 and 704 BTC in 2022 as part of a tax-related transaction strategy, later repurchasing a similar amount. On Monday, Bitcoin changed hands around $60,200, up 1.1% over the past day, according to CoinGecko, after falling as low as $58,200 last week amid selling pressure tied to STRC and Strategy common stock. Both MSTR and STRC edged lower in premarket activity on Tuesday as observers including Moonrock Capital founder Simon Dedic and Arca's chief investment officer weighed in on the durability of the new model.