Strategy Launches $1.25B Bitcoin Monetization Program @Strategy has formally initiated a $1.25 billion Bitcoin Monetization Program as part of a broader Digital Credit Capital Framework annou
@Strategy has formally initiated a $1.25 billion Bitcoin Monetization Program as part of a broader Digital Credit Capital Framework announced on June 29, 2026. The framework marks a notable shift in how the firm manages its $BTC treasury, treating Bitcoin as an active capital resource rather than a purely static holding.
Under the program, the company's board has authorized $BTC sales for three tightly defined purposes: replenishing its USD Reserve, covering quarterly preferred stock dividends and interest expenses, and funding opportunistic repurchases of $MSTR equity and Digital Credit securities. Crucially, the firm has structured the program to avoid drawing on external credit markets for these obligations.
Strategy's USD Reserve stood at $2.55 billion as of June 28, 2026, reflecting proceeds from its at-the-market offering program. Based on annual expected preferred stock dividend payments and interest expense of approximately $1.76 billion, that reserve alone represents roughly 17.4 months of coverage. Combined with the $1.25 billion in potential BTC monetization capacity, total dividend coverage reaches $3.80 billion, or approximately 25.9 months. The board has mandated a minimum reserve floor of 12 months at all times.
The framework also includes a revised dividend policy for $STRC, the firm's Variable Rate Series A Perpetual Stretch Preferred Stock. The dividend rate was raised by 50 basis points to 12.00% per annum, effective for record dates on or after July 1, 2026. Separately, the board authorized up to $1 billion in repurchases of Digital Credit preferred securities and up to $1 billion for Class A common stock buybacks, though neither program creates an obligation to transact. $MSTR shares surged approximately 7% in pre-market trading on the news.
Strategy currently holds 846,842 $BTC, making it the largest corporate Bitcoin holder globally. The new framework formalizes how the firm will manage liquidity against its growing suite of preferred securities without requiring it to issue new debt or equity.
Sources:Strategy Official Press Release via Business WireStrategy Form 8-K, SEC Filing, June 29, 2026CoinDesk: Strategy Announces $2B Buybacks and Bitcoin Monetization Plan
