Strategy has introduced a new capital management framework authorizing up to $2 billion in share buybacks, alongside a structure that could permit future bitcoin sales to bolster liquidity if needed.
The company (MSTR) unveiled its “Digital Credit Capital Framework” on Monday, outlining a series of measures aimed at strengthening its preferred securities, preserving long-term bitcoin exposure, and improving balance sheet flexibility.
As part of the initiative, Strategy has already implemented a board-approved U.S. dollar reserve policy and increased the annual dividend on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12%, effective for dividend periods beginning July 1. The company said its USD reserve now totals approximately $2.55 billion, enough to cover about 17.4 months of dividend and interest obligations.
The board also authorized, on a discretionary basis, up to $1 billion in repurchases of Digital Credit Securities and up to $1 billion in buybacks of Class A common shares. Both programs have no fixed timeline and can be adjusted, paused, or terminated depending on market conditions and management discretion.
In addition, Strategy approved a Bitcoin Monetization Program that allows the firm to sell BTC when deemed strategically appropriate. Proceeds may be directed toward replenishing USD reserves, funding dividend and interest payments, or financing share buybacks, though the company stressed there is no requirement to sell bitcoin.
Executive Chairman Michael Saylor said the framework is designed to reinforce Strategy’s credit profile while keeping bitcoin as its primary treasury reserve asset. CEO Phong Le described it as a shift toward more active capital structure management, balancing issuance and repurchases based on prevailing market conditions.
Following the announcement, MSTR shares rose around 6% in pre-market trading, STRC gained about 9%, and bitcoin edged higher to roughly $60,500.
