MarketsStrategy's New Capital Plan Enables Bitcoin Sales for Buybacks and Dividends
The firm is now positioned to sell bitcoin to bolster its USD reserve, support preferred dividends, and fund up to $2 billion in stock repurchases.
By James Van Straten|Edited by Cheyenne LigonUpdated Jun 29, 2026, 3:00 p.m. Published Jun 29, 2026, 2:11 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
SummaryShow- Strategy's revised bitcoin monetization program permits BTC sales to enhance the USD reserve, cover preferred dividends, manage interest payments, and facilitate up to $2 billion in authorized stock buybacks.
- The filing does not impose a general cap on bitcoin sales but allows BTC monetization for designated purposes. Any sales outside of board-sanctioned objectives would need further board consent.
- MSTR shares saw a 3% increase following the announcement.
As the largest publicly traded entity with bitcoin holdings, Strategy (MSTR) has initiated a new bitcoin monetization initiative, which grants the company the authority to liquidate some of its bitcoin assets to enhance its financial stability, support its perpetual preferred securities, and fund stock buybacks.
This initiative was revealed on Monday as part of Strategy's updated Digital Credit Capital Framework, marking the first official approval for the company to monetize its bitcoin reserves for specified purposes. Although the company highlighted that there is no obligation to sell any bitcoin, management now possesses board approval to proceed with sales when they believe it is more beneficial than issuing Class A common stock or exploring other funding avenues.
The filing does not define a specific limit on bitcoin sales. Instead, it allows BTC monetization for particular objectives, including the potential sale of up to $1.25 billion in bitcoin to establish the company's USD Reserve, which supports preferred stock dividends and interest payments. Bitcoin sales may also be executed to replenish this reserve after distributions are completed.
The monetization plan also permits Strategy to sell bitcoin to fund up to $1 billion in repurchases of Digital Credit Securities and another $1 billion for Class A common stock buybacks. Any bitcoin sales exceeding these authorized purposes would require further board approval. These repurchase initiatives do not have a set expiration.
This monetization initiative forms part of a larger capital allocation strategy that includes increasing the dividend on Strategy's preferred stock STRC from 11.5% to 12%, instituting a formal USD Reserve policy, and ensuring that sufficient cash reserves are maintained to cover at least 12 months of preferred stock dividends and interest obligations.
If the company were to generate the entire $1.25 billion through bitcoin sales, it would need to sell approximately 20,800 BTC at current market values, which constitutes about 2.5% of its total 847,363 BTC holdings. Additional bitcoin sales could be executed for buybacks, dividends, and interest payments under the broader monetization framework.
Michael Saylor, Founder and Executive Chairman of Strategy, stated, “At the same time, Digital Credit requires liquidity, discipline, and active capital management. This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive. This framework also sets out how we plan to use our capital management toolkit while maintaining our commitment to long-term Bitcoin exposure.”
Following this announcement, MSTR shares experienced a 3% rise, while bitcoin trades below $60,000.
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