Strategy, the largest Bitcoin treasury firm, unveiled a new Digital Credit Capital Framework on June 29, a multi-pronged liquidity strategy designed to stabilize its stock and securities while keeping its long-term Bitcoin thesis intact.

The announcement comes as Strategy’s share price has fallen for eight consecutive trading days, losing a cumulative 36%, amid broader Bitcoin price pressure

The framework signals a fundamental shift in Strategy, moving from passive Bitcoin accumulation to active capital management.

A Five-Pillar Plan to Protect Preferred Stock

The framework consists of five components: a US dollar reserve policy, a revised STRC dividend rate, a buyback program for digital credit securities, a buyback program for MSTR common stock, and a new BTC monetization program.

Strategy’s USD Reserve stands at approximately $2.55 billion as of June 28, 2026, ringfenced exclusively for preferred stock dividends and bond interest payments. With annual obligations running at approximately $1.76 billion, the reserve provides roughly 17.4 months of coverage — above the Board-mandated minimum of 12 months

To bolster that cushion further, the Board authorized a BTC monetization program allowing Strategy to sell up to $1.25 billion in Bitcoin. Combined with the existing reserve, total liquidity coverage rises to approximately $3.8 billion, or around 25.9 months of coverage.

On the buyback front, the company authorized up to $2 billion in buybacks, split evenly between MSTR common stock and its STRC preferred shares, at up to $1 billion each. The digital credit buyback program will prioritize STRC purchases and will not be funded from U.S. dollar reserves

To address STRC’s persistent discount to par value, Strategy is raising the STRC dividend rate to 12.00% annually, effective for semi-monthly periods beginning with the July 1 record date. The company aims for STRC to trade near its $100 face value and will review the rate monthly. STRC is currently trading at $81.30, an 18.7% discount to par.

“Strategy remains committed to Bitcoin as its primary treasury reserve asset,” said Michael Saylor, Founder and Executive Chairman of Strategy. “This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive.”

From Bitcoin Hoarder to Active Capital Manager

Strategy has maintained a Bitcoin treasury strategy for years, initially funded through equity and later expanded with preferred stock issuances branded as Digital Credit

However, the company’s recent financial disclosure revealed that Its Strategy is shifting from a passive “never sell Bitcoin” treasury stance to an active, algorithm-driven capital management model.

Instead of simply accumulating BTC, the company now signals it may buy, sell, or rebalance Bitcoin dynamically using internal trading systems, with decisions guided by optimizing Bitcoin per share rather than total BTC holdings.

This marks a structural change: Bitcoin is no longer treated purely as a static reserve asset, but as a managed balance sheet instrument, where selective selling or hedging can be used if it improves shareholder exposure efficiency.

Why This Matters

Strategy is the world’s largest corporate Bitcoin holder with 847,363 BTC, meaning its capital decisions carry outsized influence over Bitcoin market sentiment and institutional confidence in BTC treasury strategies. A sustained Bitcoin sell-off that forces large-scale BTC liquidations could ripple across the broader crypto market.

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A Five-Pillar Plan to Protect Preferred Stock

From Bitcoin Hoarder to Active Capital Manager

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