Strategy Boosts STRC Yield to 12%, Greenlights $2B in Share Repurchases, and Opens Door to Bitcoin Sales

Strategy Inc. (Nasdaq: MSTR), recognized globally as the largest corporate bitcoin treasury holder, rolled out a sweeping capital management initiative on June 29, 2026, dubbed the Digital Credit Capital Framework. The announcement triggered an immediate market reaction — MSTR shares surged 6% in pre-market trading, while bitcoin climbed back above the $60,000 mark.

The newly unveiled framework is built around five pillars: a board-sanctioned USD reserve policy, a dividend rate hike on one class of preferred shares, two separate $1 billion buyback programs targeting digital credit instruments and common stock respectively, and a structured bitcoin monetization mechanism that permits selective BTC sales to meet company financial obligations.

**A Fortified Dollar Reserve**

The cornerstone of the new framework is a $2.55 billion USD reserve composed of cash and cash equivalents. This reserve is earmarked exclusively to cover preferred dividend payments and interest costs associated with Strategy's outstanding debt. Given that the company faces approximately $1.76 billion in annual preferred dividend and interest obligations, the current reserve provides roughly 17.4 months of financial runway.

The board has established a hard floor: the reserve must maintain at least 12 months of coverage at all times. Dipping below this threshold requires explicit board authorization. Furthermore, funds within the reserve may only be deployed for two sanctioned purposes — paying preferred dividends and servicing debt interest. Any deviation from these uses demands separate board approval.

When factoring in $1.25 billion in authorized bitcoin monetization capacity alongside the cash reserve, Strategy's total liquidity buffer reaches $3.80 billion — representing approximately 25.9 months of coverage against its preferred dividend and interest commitments.

**STRC Dividend Gets a Meaningful Bump**

Strategy increased the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock — traded under the ticker STRC — by 50 basis points, lifting it from 11.5% to 12%. The revised rate applies to dividend periods with record dates falling on or after July 1, 2026.

The company stated its goal is for STRC to trade consistently between $99 and $100, near its stated par value of $100. The market responded positively, with STRC rising 9% following the announcement. Strategy noted it will conduct monthly reviews of the STRC dividend rate, weighing factors such as current trading levels, credit spreads, bitcoin's price and volatility, and the broader health of the company's balance sheet.

**Dual Buyback Programs Worth Up to $2 Billion**

The board greenlit two parallel repurchase programs, each capped at $1 billion. The first targets Strategy's Digital Credit Securities — an umbrella category encompassing four series of preferred stock: STRC, STRF, STRK, and STRD. The second authorizes buybacks of Class A common stock.

Neither program creates any binding obligation to purchase a set volume of securities, and both remain subject to modification, suspension, or cancellation at the board's discretion. Repurchases may be executed via open-market transactions, block trades, private negotiations, or tender offers.

CEO Phong Le characterized the dual buyback authorization as a strategic evolution for the company. "Strategy is evolving from one-way capital issuance to active capital management," Le stated. "We intend to move between issuing securities when capital is attractive and repurchasing securities when our instruments trade at levels that make buybacks accretive."

Critically, neither buyback program is funded through the USD reserve. Any buybacks financed via bitcoin sales fall under the separately governed BTC Monetization Program.

**The Bitcoin Monetization Program Explained**

The BTC Monetization Program grants Strategy the authority to sell bitcoin under three specific conditions: to build or replenish the USD reserve up to $1.25 billion, to fund preferred dividends and interest payments when management determines BTC liquidation is more advantageous than issuing new equity, and to finance repurchases of preferred or common stock.

Any bitcoin sale outside these three defined scenarios requires a fresh board vote. The program does not obligate the company to sell any portion of its bitcoin holdings.

CFO Andrew Kang emphasized that the program is designed to provide financial flexibility without compromising Strategy's long-term bitcoin conviction. "Bitcoin is capital," Kang said. "This program gives Strategy the flexibility to use a portion of its BTC Reserve to strengthen our balance sheet while preserving our core long-term Bitcoin exposure."

The Digital Credit Capital Framework represents a notable shift in how Strategy manages its balance sheet — transitioning from a purely accumulation-focused approach to a more dynamic, two-way capital management model that treats bitcoin not only as a reserve asset but also as an active financial instrument.