Strategy Moves to Stabilize STRC With Dividend Hike, Buybacks, and Bitcoin Monetization Framework

Strategy has rolled out a new capital management framework that authorizes up to $2 billion in share buybacks and introduces a mechanism that could allow future bitcoin sales to support liquidity if needed.

The company (MSTR) announced the “Digital Credit Capital Framework” on Monday, outlining a set of measures designed to strengthen its preferred securities, preserve long-term bitcoin exposure, and enhance 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 starting July 1. The company said its USD reserve totals around $2.55 billion, sufficient to cover roughly 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. Both programs are open-ended and may be adjusted, suspended, or terminated depending on market conditions and management judgment.

In addition, Strategy approved a Bitcoin Monetization Program that allows the company to sell BTC when it is considered strategically appropriate. Proceeds may be used to replenish USD reserves, meet dividend and interest obligations, or fund share buybacks, though the firm emphasized there is no requirement to sell bitcoin.

Executive Chairman Michael Saylor said the framework is intended 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 about 6% in pre-market trading, STRC gained roughly 9%, and bitcoin edged slightly higher to around $60,500.