Active Bitcoin Capital Management
Strategy Begins Bitcoin Sales for Cash Reserves and $2 Billion Share Buyback Program
Anonymous
Key Points
1
Bitcoin monetization program allows Strategy to sell up to $1.25 billion of Bitcoin to bolster the USD reserve, fund dividends and debt interest, or support the buyback programs, with no fixed expiration date and the ability to modify or suspend the program as conditions change.
2
The Digital Credit Capital Framework explicitly comprises five core policies: a USD reserve policy, an adjustment to the STRC dividend policy, separate buyback programs for Digital Credit Securities and for Class A common stock, and a plan to sell Bitcoin.
3
As of June 28, Strategy reported a USD reserve of about $2.55 billion, including expected cash proceeds from ATM (at-the-market) share sales that had not yet settled.
4
Strategy held 847,363 BTC and did not make any Bitcoin purchases during the week ended June 28; the holdings reflect an average purchase price around $75,651 per BTC. In the same period, the company raised roughly $1.15 billion in net proceeds from selling 12.67 million Class A shares through its ATM program, with no preferred securities issued via ATM.
Strategy Inc. has unveiled a sweeping new capital plan that, for the first time, formally allows the company to sell its Bitcoin holdings. The "Digital Credit Capital Framework," filed with the SEC on June 29, authorizes up to $1.25 billion in Bitcoin sales and up to $2 billion in stock buybacks — a sharp departure from the pure "buy-and-hold" approach that defined the company for six years. Crypto News reported the move signals Strategy is treating Bitcoin not as an untouchable reserve but as a liquid asset for everyday corporate finance.
The announcement comes as Strategy faces real pressure. Its 847,363 Bitcoin were bought at an average of $75,651 each, but Bitcoin was trading near $60,000 at the time of the filing — an unrealized loss of roughly $13 billion. CEO Phong Le said the company is moving "from one-way capital issuance to active capital management," according to Bitbo.
$2 Billion Buyback Plan Targets Distressed Preferred Shares
The framework authorizes two separate buyback programs totaling $2 billion. Up to $1 billion will go toward repurchasing Digital Credit Securities — mainly STRC preferred stock. The other $1 billion targets Class A common stock. Neither program has a fixed end date. Finance Yahoo reported Strategy's board framed the buybacks as a way to attract investors and stabilize share prices.
The STRC preferred stock has been under severe stress. Shares that were meant to trade near a $100 par value dropped to $71.25 on June 26 — a 28% discount. Buying back shares at that price is "accretive," meaning Strategy gets more value than it spends. To further support STRC, the company raised its annual dividend rate from 11.5% to 12%, effective July 1.
Bitcoin Sales Program Marks End of Pure HODL Strategy
The Bitcoin monetization program lets Strategy sell up to $1.25 billion of BTC. The funds can cover three things: topping up the USD cash reserve, paying dividends and debt interest, or funding the buyback programs. Decrypt noted this is the first time Strategy has formally authorized Bitcoin sales for general corporate needs — a historic shift for a company built around accumulating BTC at all costs.
The $1.25 billion cap sounds large, but it equals only about 1.5% of Strategy's total Bitcoin stash. The program has no fixed expiration and can be modified or suspended at any time. Still, analysts warn that even small, regular BTC sales could weigh on Bitcoin's price and create a feedback loop that further pressures MSTR shares.
$2.55 Billion Cash Reserve Buys Strategy Roughly 17 Months
As of June 28, Strategy held a USD reserve of about $2.55 billion. That figure includes cash proceeds from selling 12.67 million Class A shares through its ATM — or at-the-market — program, raising roughly $1.15 billion in net proceeds that week alone. The Block reported that Strategy made zero Bitcoin purchases during the same week, its first full pause in acquisitions in 2026.
Strategy's board has set a minimum rule: always keep enough cash to cover at least 12 months of dividends and interest payments. The company currently clears that bar with room to spare — its $2.55 billion reserve covers about 17.4 months of obligations. Add the $1.25 billion Bitcoin sale authorization and total liquidity reaches roughly $3.8 billion, or about 25.9 months of coverage.
Critics Warn of a Debt Spiral, Bulls Tout Balance Sheet Discipline
Not everyone sees the new framework as a sign of strength. Peter Schiff, a longtime Bitcoin skeptic, called the move a sign of desperation and predicted a "death spiral" for the company's capital structure. Analyst Axel Adler Jr. of CryptoQuant warned that the real pressure point is when Strategy shifts from selling stock to "systematically selling BTC itself to pay preferred stock dividends."
Michael Saylor pushed back. "This framework is designed to strengthen credit quality," he said in the official press release. CFO Andrew Kang backed him up, arguing that "Bitcoin is capital" — a tool the company can use like any other financial asset. Whether the market agrees will depend on whether the buybacks can push STRC back toward its $100 par value in the months ahead.
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