Strategy Eyes Selling $1.25B Bitcoin To Buyback Digital Credit Amid $1.15B MSTR Sale
Michael Saylor-led Strategy has announced a new capital allocation framework that could lead to the sale of up to $1.25 billion in Bitcoin holdings, with the proceeds used to repurchase its Digital Credit Securities. The company also paused its Bitcoin buying spree and sold $1.15 billion worth of MSTR stock.
On Monday, June 29, the company revealed a new Digital Credit Capital Framework designed to boost its preferred securities and improve liquidity. Strategy emphasized its commitment to maintaining long-term exposure to Bitcoin while generating shareholder value.
A core component is the BTC Monetization Program, which permits Strategy to trade Bitcoin for capital management purposes beyond simple accumulation. Under this program, the company can monetize Bitcoin to generate up to $1.25 billion held in a USD Reserve. This reserve will be used for paying preferred stock dividends and interest, contributing to cash reserves, and funding approved repurchase programs.
Simultaneously, Strategy authorized the repurchase of up to $1 billion worth of Digital Credit Securities, including STRC, STRF, STRD, and STRK, with STRC likely the first target if management decides a buyback will enhance the capital structure. Any such repurchases funded by selling Bitcoin will occur through the BTC Monetization Program. However, Strategy noted that it is not obligated to sell Bitcoin under this scheme, meaning it may choose not to offload its BTC stash at all. The recent sale of 32 BTC has raised concerns about further selloffs following the new program’s announcement.
The announcement came as Strategy paused its Bitcoin purchases. During the week ending June 28, the company made no Bitcoin acquisitions, maintaining its total holdings at 847,363 BTC, purchased for $64.10 billion. Instead, Strategy sold 12.67 million MSTR shares through its at-the-market offering program, netting approximately $1.152 billion in proceeds.
Additionally, Strategy increased the annual dividend on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12% for dividends payable beginning July 1, 2026. This move aims to restore the STRC stock price toward its $100 par value. In pre-market trading, STRC surged 9.48% to $81.64, reflecting investor confidence in the new framework.