Strategy's New Capital Plan Enables Bitcoin Sales for Buybacks and Dividends

Strategy has launched a new capital initiative allowing the sale of bitcoin to enhance its USD reserves, cover preferred dividends, and support stock buybacks totaling up to $2 billion.

New Monetization Framework to Bolster Financial Stability

On June 29, 2026, Strategy (MSTR), the largest publicly traded holder of bitcoin, announced a new monetization strategy as part of its Digital Credit Capital Framework. This plan grants the company the authority to liquidate portions of its bitcoin reserves for specific financial purposes.

The initiative is designed to strengthen the firm's financial position, enabling it to manage interest payments and fund up to $1 billion in buybacks of its Digital Credit Securities and another $1 billion for Class A common stock repurchases. This comes as part of a broader strategy to increase dividends on preferred stock from 11.5% to 12% and maintain adequate cash reserves for at least 12 months of preferred stock dividends and interest obligations.

While there is no set cap on bitcoin sales, the framework specifies that proceeds from these sales will primarily be used to establish a USD reserve, which could involve selling up to $1.25 billion in bitcoin. If fully executed, this would require selling around 20,800 BTC, roughly 2.5% of the company's total holdings of 847,363 BTC.

Michael Saylor, Founder and Executive Chairman of Strategy, emphasized the importance of liquidity and disciplined capital management, stating that the new framework aims to enhance credit quality and optimize preferred stock dividend payments. Following the announcement, shares of MSTR rose by 3%, with bitcoin trading below $60,000.