Strategy Hikes STRC Dividend to 12%, Greenlights $2B in Buybacks, and Opens Door to Bitcoin Sales

Strategy Inc. (Nasdaq: MSTR), recognized globally as the largest corporate bitcoin treasury holder, unveiled a comprehensive capital management overhaul on June 29, 2026. The company introduced what it has branded the Digital Credit Capital Framework — a five-pillar approach to managing liquidity, preferred stock dividends, share repurchases, and selective bitcoin monetization. The announcement immediately moved markets, sending MSTR shares up 6% in pre-market trading and pushing bitcoin's price above the $60,000 mark.

The framework consists of five distinct components: a board-approved USD reserve policy, a dividend rate hike on one class of preferred stock, a $1 billion buyback program targeting digital credit securities, a separate $1 billion buyback program for common shares, and a bitcoin monetization initiative that grants the company authority to sell BTC under defined conditions.

**A Fortified USD Reserve**

Central to the new framework is a $2.55 billion USD reserve composed of cash and cash equivalents. This reserve is earmarked exclusively for covering preferred dividend payments and servicing interest on the company's outstanding debt. Strategy currently carries approximately $1.76 billion in annual obligations tied to preferred dividends and interest, meaning the reserve provides roughly 17.4 months of coverage.

The board has established a hard floor: the reserve must never drop below 12 months of coverage without explicit board authorization. Its permitted uses are tightly restricted — only preferred stock dividend payments and debt interest servicing qualify. Any deviation from these two purposes requires separate board approval.

When factoring in the company's $1.25 billion in authorized bitcoin monetization capacity, Strategy's total liquidity cushion reaches $3.80 billion — equivalent to 25.9 months of preferred dividend and interest obligations combined.

**STRC Dividend Raised to 12%**

Strategy boosted the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock — traded under the ticker STRC — by 50 basis points, moving it from 11.5% to 12% per year. The new rate applies to dividend periods with record dates on or after July 1, 2026. Following the announcement, STRC shares climbed 9%.

The company has set a long-term trading target for STRC in the $99 to $100 range, close to its $100 stated value. Management indicated it will review the STRC dividend rate monthly, weighing factors such as current trading levels, credit spreads, bitcoin price and volatility, and the overall health of the company's balance sheet.

**Dual $1 Billion Buyback Programs**

The board has authorized two parallel buyback programs, each capped at $1 billion. The first covers repurchases of Digital Credit Securities — a category encompassing four series of preferred stock: STRC, STRF, STRK, and STRD. The second targets Class A common stock.

Neither program commits the company to purchasing any fixed quantity of securities, and both can be paused, adjusted, or terminated at any time. Repurchases may occur through open-market transactions, block trades, private negotiations, or tender offers. Importantly, neither buyback program will draw on the protected USD reserve.

CEO Phong Le described the move as a strategic maturation 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."

**The Bitcoin Monetization Program**

The Bitcoin Monetization Program grants Strategy the authority to sell BTC under three specific scenarios: to build or replenish the USD reserve up to $1.25 billion, to fund preferred dividends and interest payments when management determines BTC sales are more favorable than issuing new equity, and to finance buybacks of preferred or common stock.

Any bitcoin sale outside these three defined purposes requires a fresh board vote. The program does not obligate Strategy to sell any BTC — it simply creates the option.

CFO Andrew Kang framed the initiative as a practical extension of the company's long-standing bitcoin strategy. "Bitcoin is capital," Kang said, adding that the program gives Strategy the flexibility to deploy a portion of its BTC reserve to strengthen the company's financial position without abandoning its core conviction in bitcoin as a long-term treasury asset.

Taken together, the Digital Credit Capital Framework marks a notable shift in how Strategy manages its balance sheet — moving from aggressive accumulation toward a more dynamic approach that balances bitcoin exposure with financial discipline.