Strategy has rolled out a new capital management framework that authorizes up to $2 billion in share repurchases while also introducing a mechanism that could enable future bitcoin sales to support liquidity.
The company (MSTR) unveiled its “Digital Credit Capital Framework” on Monday, outlining measures aimed at strengthening its preferred securities, preserving long-term bitcoin exposure, and increasing balance sheet flexibility.
As part of the plan, Strategy has already adopted a board-approved U.S. dollar reserve policy and raised the annual dividend on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12%, effective for dividend periods beginning July 1. The firm said its USD reserve stands at roughly $2.55 billion, sufficient to cover about 17.4 months of dividend and interest payments.
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. The programs carry no fixed timeline and may be altered, suspended, or terminated depending on market conditions and management judgment.
Additionally, Strategy approved a Bitcoin Monetization Program that allows the company to sell BTC when it is deemed strategically beneficial. Proceeds may be used to replenish USD reserves, fund dividend and interest obligations, or support share repurchases, although the company emphasized there is no obligation to sell bitcoin.
Executive Chairman Michael Saylor said the framework is intended to strengthen Strategy’s credit position while maintaining bitcoin as its primary treasury reserve asset. CEO Phong Le described it as a shift toward more active capital structure management, balancing issuance and buybacks depending on market conditions.
Following the announcement, MSTR shares rose about 6% in pre-market trading, STRC gained roughly 9%, and bitcoin moved slightly higher to around $60,500.
