Strategy Launches $2 Billion Buyback and Bitcoin Sale Plan
The new capital policy gives Strategy room for buybacks and a possible BTC sale, while keeping its biggest corporate Bitcoin position intact. The market reacted right away to MSTR, STRC, and the Bitcoin price.
Key Takeaways
- Strategy rolled out a new Digital Credit Capital Framework designed to support preferred securities, give the balance sheet more flexibility, and keep Bitcoin as a long-term reserve asset.
- The board approved up to $1 billion in Digital Credit Securities buybacks and another $1 billion in Class A share repurchases, with no set expiration date.
- Under the Bitcoin Monetization Program, Strategy can sell Bitcoin to build reserves, cover dividends, or help finance buybacks.
Strategy introduced a new Digital Credit Capital Framework on Monday, along with a broader set of capital moves aimed at supporting preferred securities, improving balance sheet flexibility, and keeping its Bitcoin position intact over the long run. The company is also putting more emphasis on liquidity, while staying committed to its BTC treasury model.
New Capital Structure
The company has already established a board-approved U.S. dollar reserve policy and lifted the annual dividend rate on the Variable Rate Series A Perpetual Stretch Preferred Stock, STRC, to 12% for dividend periods beginning July 1. Strategy says the dollar reserve now totals about $2.55 billion (€2.2 billion), which it says is enough to cover roughly 17.4 months of preferred dividend and interest payments.
The board also signed off on up to $1 billion (€0.9 billion) in buybacks of Digital Credit Securities and another $1 billion (€0.9 billion) in repurchases of Class A common stock. These are authorizations, not mandates: there is no fixed end date, and the programs can be adjusted, paused, or shut down at any time. Strategy says any repurchases will depend on market conditions and whether they create value.
Bitcoin Remains the Core Reserve
The other major addition is the Bitcoin Monetization Program. It gives Strategy the option to sell BTC if management believes that is the right move. The cash raised can be used to increase the USD reserve, pay preferred dividends and interest, or support repurchases. Even so, the company says the program does not require it to sell Bitcoin.
Strategy, which has been the largest corporate Bitcoin holder since August 2020, is keeping that strategy in place while taking a more active approach to managing its capital structure. In May, the company repurchased $1.5 billion (€1.3 billion) in zero-coupon convertible notes, using $1.38 billion (€1.2 billion) to retire the debt at an 8% discount. That move suggests the company has been reshaping its financing mix for some time.
The new framework arrives as investors are already paying close attention to the gap between Strategy’s stock price and the value of its Bitcoin holdings. MicroStrategy's Valuation Falls Below Bitcoin Holdings Value previously highlighted how that premium vanished, making fresh share issuance more sensitive.
Why This Matters for Europe
For European crypto readers, the main point is that one of the most closely watched public BTC buyers is now more explicitly tying its treasury policy to buybacks, reserves, and the possibility of Bitcoin sales. Strategy held about 843,738 BTC at the end of May, worth around $65.25 billion (€57.2 billion), so even small changes to its capital policy tend to draw outsized attention across the crypto market. It also underscores how blurred the line has become between a software company, a financing vehicle, and a Bitcoin treasury.
The market responded quickly: MSTR rose 6% in premarket trading, STRC gained 9%, and Bitcoin traded above $60,000 (€52,600), around $60,500 (€53,100).
