Saylor Finally Reads the Room: Strategy's New Capital Playbook Lets It Sell Bitcoin, Buy Back Stock 💰

Strategy (MSTR) introduced a Digital Credit Capital Framework on Monday, ending a nine-day losing streak for its shares and giving the Bitcoin treasury company formal authorization to monetize a portion of its holdings for the first time. Class A common stock MSTR climbed 12.6% to $92.68, while the company's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) rose 12.2% to $83.67, according to Yahoo Finance and TradingView. STRC, which fell as low as $71.25 last week, is designed to trade at a $100 par value.

The framework includes a board-approved Bitcoin Monetization Program allowing Strategy to sell up to $1.25 billion in BTC to build or replenish its USD Reserve, fund preferred dividend and interest payments, and finance share repurchases. At current prices, the authorized sale amount equals roughly 21,082 BTC, about 2.5% of the company's reported 847,363 BTC holdings, according to CoinGecko. The board also authorized up to $1 billion in repurchases of Digital Credit Securities and up to $1 billion in buybacks of Class A common stock. Both programs have no fixed expiration date. Strategy's USD Reserve currently stands at approximately $2.55 billion, enough to cover about 17.4 months of preferred dividend and interest obligations.

The company raised the annual dividend rate on STRC to 12% from 11.5%, effective for dividend periods beginning July 1, marking the eighth increase for the product. Strategy indicated it would issue common shares only when the company trades at a premium relative to its enterprise value and may repurchase common and preferred shares during periods of "market dislocations." Executive Chairman Michael Saylor said, "At the same time, Digital Credit requires liquidity, discipline, and active capital management. This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive. This framework also sets out how we plan to use our capital management toolkit while maintaining our commitment to long-term Bitcoin exposure."

Benchmark Equity Research reiterated a Buy rating on MSTR with a 12-month price target of $570, calling the framework "robust." Mark Palmer, managing director and senior research analyst at Benchmark-StoneX, wrote 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," describing the plan as a "direct, point-by-point answer to the concerns investors have been voicing." Strategy 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 strategy later reversed.

Reaction across the industry remained split. Moonrock Capital founder Simon Dedic said the move could mark a local bottom and suggested some recent selling pressure may have reflected Strategy preparing liquidity ahead of the announcement. Trader Scott Melker said the changes appeared to address investor demands but cautioned that "only time will tell" whether confidence is restored, noting that Strategy has been the market's largest Bitcoin buyer. Bitcoin traded around $60,200 on Monday, up 1.1% over the prior day, after falling as low as $58,200 last week amid selling pressure tied to STRC and MSTR, according to CoinGecko.