Saylor's Strategy finally learns to sell: $1.25B Bitcoin monetization program green-lit 🧠

Strategy adopted a Digital Credit Capital Framework on Monday that formally authorizes the company to sell portions of its Bitcoin holdings for the first time, introducing a $1.25 billion Bitcoin Monetization Program alongside up to $2 billion in buyback authorizations and a higher dividend on its flagship preferred security. The framework, detailed in a Form 8-K filing with the US Securities and Exchange Commission, allows Strategy (Nasdaq: MSTR) to monetize $BTC to build or replenish its USD Reserve, pay preferred stock dividends and interest obligations, and finance repurchases of Digital Credit Securities and Class A common stock. "Strategy remains committed to Bitcoin as its primary treasury reserve asset," co-founder and Executive Chairman Michael Saylor said. "At the same time, Digital Credit requires liquidity, discipline, and active capital management." Saylor added that Strategy "expects to remain disciplined in its use of MSTR issuance, particularly when the stock trades at or near 1x mNAV."

The board raised the annual dividend rate on the Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12% from 11.5%, effective for dividend periods beginning July 1, and authorized up to $1 billion in repurchases of Digital Credit Securities and up to $1 billion in repurchases of MSTR common stock. Strategy disclosed its USD Reserve now stands at approximately $2.55 billion, enough to cover about 17.4 months of preferred dividend and interest obligations, and said the reserve can only be used for those payments and must be maintained at a minimum of 12 months coverage unless the board approves otherwise. Combined with the $1.25 billion Bitcoin monetization capacity, the company stated total dividend coverage rises to $3.8 billion, or roughly 25.9 months. President and CEO Phong Le described the framework as a shift from primarily issuing capital to "actively managing the capital structure through both issuance and repurchases."

Strategy reported no Bitcoin purchases during the week ended Sunday, leaving holdings unchanged at 847,363 $BTC acquired for a combined $64.1 billion at an average price of $75,651 per coin. The company also disclosed raising approximately $1.15 billion in net proceeds by selling 12.67 million MSTR shares. Earlier in June, Strategy added a net 3,625 $BTC after buying 3,657 $BTC and selling 32 $BTC. At last check, $BTC traded around $60,500, up modestly on the day, while MSTR climbed roughly 5–6% in pre-market trading to $86.52 and STRC advanced about 9%. The monetization program carries no obligation to sell, and any Bitcoin sales outside the board-approved purposes would require additional authorization.