Strategy Inc. (NASDAQ:MSTR) shares are trading higher Monday after the company announced a Digital Credit Capital Framework designed to strengthen its preferred securities, enhance liquidity and preserve long-term Bitcoin exposure, a major shift in how the company manages its capital structure.
- Strategy shares are climbing with conviction. What’s driving MSTR stock higher?
The Framework
The Digital Credit Capital Framework has five components: a Board-approved USD Reserve policy, a revised STRC dividend policy, a Digital Credit Securities repurchase program of up to $1 billion, a class A common stock repurchase program of up to $1 billion, and a BTC Monetization Program. The announcement marks a meaningful strategic evolution, from one-way capital issuance toward active, two-way capital management.
The USD Reserve
Strategy’s USD Reserve stands at approximately $2.55 billion as of June 28, 2026. Under the new Board-approved policy, the reserve may only be used to support dividend payments on preferred stock and interest on outstanding debt. The company has set a minimum reserve floor of 12 months of annual preferred stock dividend payments and interest expense—approximately $1.76 billion annually. Combined with $1.25 billions of Board-authorized BTC monetization capacity, Strategy has approximately $3.80 billion in total preferred stock dividend liquidity coverage, representing roughly 25.9 months of coverage.
The STRC Dividend and Repurchase Programs
Strategy raised the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock to 12.00% annually, effective for semi-monthly periods with record dates on or after July 1, 2026. The company said its corporate objective is for STRC to trade near its $100 stated amount over time.
On the repurchase side, Strategy established a $1 billion program covering its Digital Credit Securities, including STRC, STRF, STRD, and STRK, with STRC expected to be the initial priority. A separate $1 billion class A common stock repurchase program was also announced.
The BTC Monetization Program
The Board authorized Strategy to sell Bitcoin for three primary purposes: to generate up to $1.25 billion to fund the USD Reserve, to fund preferred stock dividends and interest expense when management determines it is more advantageous than issuing equity, and to fund repurchases of Digital Credit Securities or common stock. Any BTC monetization outside these purposes requires additional Board authorization.
“Bitcoin is capital,” said Andrew Kang, CFO. “This program gives Strategy the flexibility to use a portion of its BTC Reserve to strengthen Digital Credit, fund dividend payments and interest expense, and fund accretive repurchases when BTC monetization is more advantageous than issuing common equity.”
Strategy Shares Trade Higher
MSTR Price Action: At the time of publication, Strategy shares are trading 4.04% higher at $85.63, according to data from Benzinga Pro.
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