Strategy authorizes bitcoin sales to fund stock buybacks

Colleen Cabili

Mon, June 29, 2026 astatine 11:21 AM CDT 3 min read

Strategy adopted a caller Digital Credit Capital Framework connected Monday that authorizes the institution to merchantability bitcoin to money banal buybacks — a reversal of the attack it has followed since designating bitcoin its superior treasury reserve asset.

Two abstracted repurchase authorizations beryllium astatine the halfway of the framework: 1 covering up to $1 cardinal successful preferred securities and different covering the aforesaid magnitude successful people A communal stock. A bitcoin monetization programme is besides portion of the package, giving absorption discretion to merchantability bitcoin and nonstop the proceeds toward immoderate operation of reserve building, dividend and involvement obligations, oregon the repurchase programs. Neither the repurchase authorizations nor the bitcoin monetization programme carries immoderate request to transact.

"Strategy is evolving from one-way superior issuance to progressive superior management," CEO Phong Le said successful a statement. The CEO described the company's caller posture arsenic 1 of two-way flexibility — putting superior retired erstwhile conditions favour issuance and pulling it backmost erstwhile buybacks make value.

The committee authorized bitcoin income of up to $1.25 cardinal to physique the USD reserve. Adding that imaginable $1.25 cardinal to the $2.55 cardinal already connected manus arsenic of June 28 would bring full liquidity disposable to screen preferred dividends and involvement to astir $3.8 cardinal — capable to sorb astir 26 months of the company's astir $1.76 cardinal successful yearly obligations. Going forward, committee argumentation volition necessitate the reserve to screen nary little than a year's worthy of dividend and involvement disbursal astatine immoderate fixed time.

As portion of the framework, Strategy raised the yearly dividend complaint connected its Variable Rate Series A Perpetual Stretch Preferred Stock, which trades nether the ticker STRC, to 12% from 11.5%, effectual for dividend periods opening July 1. The institution said its extremity is for STRC to commercialized successful a scope of astir $99 to $100, adjacent to its $100 stated amount.

The announcement follows a hard agelong for the company, according to The Wall Street Journal. The preferred shares had sunk to a grounds debased of astir $75, a 25% spread beneath their $100 look value, portion the communal banal had shed much than 80% of its worth since its November 2024 high. When a company's marketplace capitalization falls beneath the worth of its underlying assets — arsenic happened present — caller stock issuance destroys worth for existing holders alternatively than creating it, efficaciously closing disconnected Strategy's superior instrumentality for acquiring much bitcoin.