Strategy Unveils $2B Buyback Program and Authorizes Up to $1.25B in Bitcoin Sales to Shore Up Its USD Reserve

Since MSTR and STRC hit 52-week lows earlier this month with Bitcoin near $58,000 and Strategy's dividend runway compressing, the company has been under pressure to demonstrate it can service its preferred obligations without continuously diluting shareholders. Monday's framework is its answer.

What the Digital Credit Capital Framework Actually Does

Strategy's board approved four interlocking mechanisms, according to Crypto Briefing. First, a USD Reserve policy restricting those funds to preferred stock dividends and interest payments unless the board authorizes otherwise. Second, a mandate requiring management to maintain a reserve covering at least 12 months of expected preferred dividend and interest obligations at all times.

As of June 28, the USD Reserve stood at over $2.55 billion, which KuCoin reports represents approximately 17.4 months of coverage. A cushion that exceeds the 12-month floor, for now.

Third, the board authorized up to $1 billion in repurchases of Digital Credit Securities — including STRC, STRF, STRD, and STRK — with STRC receiving initial priority where buybacks are deemed accretive. Fourth, a separate $1 billion Class A common stock repurchase authorization. Neither buyback program draws from the USD Reserve.

The Bitcoin Sales Authorization

The most consequential piece is the BTC Monetization Program. The board approved selling up to $1.25 billion of Strategy's Bitcoin holdings to fund or replenish the USD Reserve, support preferred dividend and interest payments, or finance preferred security and common stock buybacks when that is preferable to capital markets financing. Any Bitcoin sales outside those purposes require additional board approval, according to Crypto Briefing.

Strategy holds 847,363 BTC, worth approximately $51 billion at current market prices, per Crypto Briefing. This is not a liquidation event. The $1.25 billion authorization is a defined ceiling on discretionary sales tied to specific capital management triggers.

The company sold no Bitcoin last week and made no new purchases during the June 22–28 reporting period. It did sell approximately 12.7 million MSTR shares for $1.1 billion in net proceeds through its ATM program, per Crypto Briefing.

The STRC Dividend Change

KuCoin reported that Strategy increased the regular dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12.00%, effective for record dates beginning July 1, 2026. The revised STRC dividend framework will now involve monthly evaluations based on market conditions, STRC pricing, credit spreads, Bitcoin volatility, and reserve coverage. Management was explicit: dividend increases will not automatically follow if STRC trades below its stated amount.

The Case Against Reading This as Bullish

The strongest concern among investors who follow Strategy closely is straightforward. Creating a formal framework to sell Bitcoin changes what Strategy is. For years, Michael Saylor's company operated as an accumulation proxy — you bought MSTR or STRC because you wanted leveraged exposure to Bitcoin going up. A board-approved mechanism to sell Bitcoin on a defined basis shifts the identity of the vehicle.

KuCoin draws the comparison to Tesla, which sold 75% of its Bitcoin holdings in Q2 2022 to improve cash liquidity. Markets treated that as balance-sheet management, not an ideological break. But Tesla never built a leveraged preferred-stock structure around Bitcoin. Strategy did. If Strategy discloses material BTC monetization activity through 8-K filings, KuCoin notes, investors may begin to reprice whether MSTR and STRC trade as accumulation proxies or capital-management vehicles.

Crypto Briefing reported Bitcoin moved higher after the announcement, rising from around $59,800 to nearly $60,700, suggesting the market's initial read was more relief than alarm. Whether that holds depends on whether Strategy actually triggers the monetization program or simply holds it as a backstop.

What Comes Next

The unresolved question is whether the 17.4-month reserve coverage is enough buffer to avoid triggering Bitcoin sales at all. If Bitcoin climbs from its current levels, preferred obligations become easier to service from ATM equity proceeds alone — the same playbook Strategy has run for two years. If Bitcoin falls, the reserve coverage compresses again, and the board will face a live decision on whether to pull the BTC monetization trigger. That decision, if it comes, would be disclosed via SEC filing and would be the first concrete test of whether this framework is a safeguard or a preview of a new operating posture.