Strategy Launches $2.55B Reserve Shield as MSTR Plunges 30% and Bitcoin Hits $60K

Strategy Inc. rolled out a sweeping five-part Digital Credit Capital Framework on Monday morning, authorizing bitcoin sales, boosting its STRC preferred dividend rate, and opening $1 billion buyback programs for both preferred stock and common shares as bitcoin trades around $60,032 per coin at 8 a.m. Eastern time and MSTR shares sit around $82.

• Key Takeaways:
• • Strategy’s $2.55B USD Reserve covers 17.4 months of preferred dividends and interest payments.
• • STRC dividend rate rises to 12% effective July 1, 2026, targeting a $99-$100 trading price.
• • Strategy authorizes $1B each in preferred stock and MSTR buybacks, funded partly via bitcoin sales.

The Tysons Corner, Va.-based company disclosed a USD Reserve of approximately $2.55 billion as of June 28, 2026. That figure includes expected cash proceeds from unsettled at-the-market offering sales. Under a new board-approved policy, the reserve can only be used to pay preferred dividends and interest on outstanding debt. Any other use requires board authorization.

At current spending rates, the $2.55 billion covers approximately 17.4 months of Strategy‘s annual preferred dividend and interest obligations, which total about $1.76 billion per year. The board set a minimum reserve floor of 12 months of coverage.

“Strategy remains committed to bitcoin as its primary treasury reserve asset,” said Michael Saylor, founder and executive chairman of Strategy. “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.”

On X, Saylor added:

“Strategy expects to remain disciplined in its use of MSTR issuance, particularly when the stock trades at or near 1x mNAV.”

STRC Gets a Rate Hike

Strategy raised the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) from approximately 11.5% to 12.00%, effective for semi-monthly periods with record dates on or after July 1, 2026. STRC, which targets a par value of $100, has slid to around $74.57 as Bitcoin’s 30%-plus year-to-date decline and broader risk-off sentiment have pressured the instrument.

The company said its corporate objective is for STRC to trade between $99 and $100 over time. Strategy will evaluate the STRC dividend rate monthly using factors including STRC trading levels, bitcoin price and volatility, USD Reserve coverage, and credit market conditions.

Buyback Programs

Strategy authorized two separate $1 billion repurchase programs. The first covers its Digital Credit Securities, including STRC, STRF, STRD, and STRK preferred shares. STRC is the initial buyback priority if management determines purchases are accretive. The second covers class A common stock.

CEO Phong Le framed the move as a shift in capital strategy. “We intend to move between issuing securities when capital is attractive and repurchasing securities when our instruments trade at levels that make buybacks accretive,” Le remarked.

Neither buyback program is funded from the USD Reserve. Both can be modified, suspended, or terminated at any time.

Bitcoin Sales Now on the Table

The framework also authorizes a BTC Monetization Program, which allows Strategy to sell bitcoin for three purposes: to build up to $1.25 billion in USD Reserve, to fund dividend and interest payments when bitcoin sales are more advantageous than stock issuance, and to fund buybacks.

Combined with the existing $2.55 billion USD Reserve, the $1.25 billion BTC monetization authorization gives Strategy approximately $3.80 billion in total preferred stock dividend liquidity coverage, or about 25.9 months of current obligations.

“ Bitcoin is capital,” said Andrew Kang, chief financial officer of Strategy.

Kang added:

“With a $2.55 billion USD Reserve and $1.25 billion of Board-authorized reserve-building BTC monetization capacity, Strategy has approximately 25.9 months of current preferred stock dividend liquidity coverage.”

Equity Discipline

Strategy said it expects to pull back on common stock issuance, particularly when MSTR trades near 1x mNAV per share. MSTR shares have fallen sharply alongside bitcoin’s 30%-plus year-to-date decline and now trade around $82, and STRC has traded below par.

The company will disclose material bitcoin sales and capital markets activity through its customary Form 8-K practices. Despite the announcement of possible BTC sales, bitcoin’s price jumped a percentage point higher after Saylor’s statement to $60,625 per coin.