Strategy may sell up to $1.25 billion of bitcoin under new plan
Strategy Inc. (MSTR) on Monday authorized optional bitcoin sales of up to $1.25 billion under a new BTC Monetization Program. The board-approved plan lets the company sell BTC to build its USD reserve, cover preferred dividends and interest, or fund repurchases—not a forced liquidation, but a formal capital-management tool as Michael Saylor's firm shifts toward active balance-sheet management.
Key Takeaways
- Strategy's board authorized selling up to $1.25 billion of bitcoin under a BTC Monetization Program, but the company is not obligated to sell any BTC.
- A new Digital Credit Capital Framework pairs the monetization plan with a $2.55 billion USD reserve and up to $2 billion in buyback authorizations.
- STRC's annual dividend rate rises to 12%, effective for semi-monthly periods with record dates on or after July 1, 2026.
- Combined reserve and monetization capacity gives Strategy roughly 25.9 months of preferred dividend and interest coverage.
- MSTR shares rose about 6% pre-market on the announcement, per CoinDesk.
What Did Strategy Announce on June 29?
Strategy unveiled its Digital Credit Capital Framework on June 29, 2026, outlining how the world's largest corporate bitcoin holder plans to manage liquidity while preserving long-term BTC exposure.
Five pillars anchor the framework: a board-approved USD Reserve policy, a revised STRC dividend policy, repurchase programs for preferred and common stock, and the BTC Monetization Program. Executive Chairman Michael Saylor said Strategy remains committed to bitcoin as its primary treasury reserve asset while adding the discipline Digital Credit requires.
Why Is MSTR Authorized to Sell Bitcoin Now?
The BTC Monetization Program formalizes a capital tool Strategy can use when management judges sales more advantageous than issuing common stock or pursuing other capital-markets transactions. Under the authorization, the company may sell BTC from time to time for three primary purposes.
First, to generate up to $1.25 billion to fund the USD Reserve. Second, to fund preferred dividends and interest as they come due, or replenish the reserve after those payments. Third, to finance repurchases of Digital Credit securities or class A common stock under the new buyback programs.
CFO Andrew Kang said bitcoin is capital, and the program gives Strategy flexibility to strengthen Digital Credit while funding dividends and accretive repurchases. Any monetization outside these purposes or above these authorizations requires further board approval.
What Else Is in the New Capital Framework?
Strategy's USD Reserve stood at approximately $2.55 billion as of June 28, 2026, covering roughly 17.4 months of expected preferred dividends and interest totaling about $1.76 billion annually. Board policy requires maintaining at least 12 months of coverage.
Pairing the reserve with $1.25 billion of monetization capacity lifts total liquidity coverage to about $3.80 billion, or roughly 25.9 months. The board also authorized—but did not commit to—up to $1 billion in Digital Credit repurchases and $1 billion in MSTR buybacks, with no fixed expiration on either program.
STRC's dividend rate increases to 12.00% for record dates on or after July 1, 2026. CEO Phong Le said Strategy is evolving from one-way capital issuance to active management, repurchasing securities when buybacks are accretive.
How Did Markets React to the Bitcoin Sale Plan?
Investors appeared to welcome the added transparency. According to CoinDesk, MSTR shares rose about 6% pre-market, STRC gained roughly 9%, and bitcoin traded near $60,500 after the announcement.
For ongoing coverage of corporate treasury moves and crypto market shifts, follow our Fintech & Crypto Alerts section.