Strategy Inc. has announced its Digital Credit Capital Framework to strengthen its financial structure, improve liquidity management, and support long-term Bitcoin exposure. The company introduced the framework to enhance its Digital Credit Securities while creating additional tools for shareholder value creation.
The newly adopted framework focuses on disciplined capital management and includes multiple strategic initiatives. These initiatives include a Board-approved USD Reserve policy, an updated STRC dividend policy, Digital Credit Securities repurchase authorization, class A common stock repurchase authorization, and a BTC monetization program.
“Strategy remains committed to Bitcoin as its primary treasury reserve asset,” said Michael Saylor, Founder and Executive Chairman of Strategy. “At the same time, Digital Credit requires liquidity, discipline, and active capital management. This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive. This framework also sets out how we plan to use our capital management toolkit while maintaining our commitment to long-term Bitcoin exposure.”
Strategy Establishes USD Reserve Policy for Liquidity Support
Under the new framework, Strategy has established a USD Reserve policy designed to support preferred stock dividend payments and interest obligations. As of June 28, 2026, the company’s USD Reserve stood at approximately $2.55 billion.
The reserve includes expected cash proceeds from shares sold through Strategy’s at-the-market offering program that had not been settled by the reported date. Furthermore, the company stated that any alternative use of the USD Reserve will require approval from the Board.
Based on current expected annual preferred stock dividend payments and interest expenses of nearly $1.76 billion, the reserve provides approximately 17.4 months of coverage.
Additionally, Strategy has introduced a policy to maintain a minimum USD Reserve covering at least 12 months of expected annual preferred stock dividend payments and interest expenses. Any reduction below this level will require Board authorization.
The company also plans to combine its USD Reserve with Board-authorized BTC monetization capacity. Together, these resources could provide approximately $3.80 billion in liquidity coverage, representing nearly 25.9 months of current expected obligations.
STRC Dividend Policy and Digital Credit Securities Repurchase Plans
Strategy announced an increase in the annual dividend rate for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC). The new annual dividend rate will increase to 12.00% for semi-monthly periods with record dates beginning on or after July 1, 2026.
The company aims for STRC to trade within a range close to its $100 stated amount. Strategy stated that these actions are designed to improve dividend liquidity, strengthen investor confidence, and provide additional capital allocation flexibility.
However, the company clarified that STRC’s trading price may fluctuate and cannot guarantee any specific trading range. Moreover, Strategy introduced a Digital Credit Securities repurchase program with an aggregate purchase authorization of up to $1 billion. The program includes STRC, STRF, STRD, and STRK securities.
The company expects STRC to receive initial priority under this program if management determines that repurchases can improve the capital structure.
Strategy Expands BTC Monetization and Stock Repurchase Programs
Strategy also announced a $1 billion repurchase program for its class A common stock. The company may conduct purchases through open-market transactions, block trades, privately negotiated deals, accelerated share repurchase transactions, or other permitted methods.
The company stated that these repurchases will depend on market conditions, liquidity, trading prices, and legal requirements.
“Strategy is evolving from one-way capital issuance to active capital management,” said Phong Le, Chief Executive Officer of Strategy. “We intend to move between issuing securities when capital is attractive and repurchasing securities when our instruments trade at levels that make buybacks accretive. This flexibility is designed to create shareholder value, improve corporate performance, and strengthen the quality and market standing of Strategy’s securities in the eyes of investors.”
Through the BTC Monetization Program, Strategy’s Board has authorized the company to sell Bitcoin when required for specific financial objectives. The program allows BTC sales to generate up to $1.25 billion for building the USD Reserve. Additionally, the company may use BTC monetization to support preferred stock dividends, interest payments, and approved repurchase activities.
“This program gives Strategy the flexibility to use a portion of its BTC Reserve to strengthen Digital Credit, fund or replenish the USD Reserve, fund dividend payments and interest expense, and fund accretive repurchases when BTC monetization is more advantageous than issuing common equity. With a $2.55 billion USD Reserve and $1.25 billion of Board-authorized reserve-building BTC monetization capacity, Strategy has approximately 25.9 months of current preferred stock dividend liquidity coverage,” said Andrew Kang, Chief Financial Officer of Strategy.
Strategy Maintains Discipline in Common Equity Issuance
Strategy confirmed that it will continue maintaining discipline regarding common equity issuance. The company stated that future equity decisions will depend on market conditions, capital requirements, trading levels, and long-term shareholder value considerations.
The company believes that the Digital Credit Capital Framework provides greater flexibility in managing financial resources while maintaining its commitment to Bitcoin as a primary treasury reserve asset. Strategy will continue reporting significant BTC monetization activities and capital market transactions through applicable regulatory disclosures, including Form 8-K filings.
Explore Finance Tech News for the latest innovations in financial technologies and expert insights shaping the future of digital finance!
News Source: Businesswire.com
