Overview
- The company unveiled a Digital Credit Capital Framework on Monday that formally allows a BTC Monetization Program to raise up to $1.25 billion and establishes a roughly $2.55 billion USD reserve to cover preferred dividends and interest.
- Strategy raised the STRC preferred dividend to 12% effective July 1 and authorized buybacks of its common stock and preferred securities of up to $1 billion each, a combined program the company says it can use to stabilize prices.
- The announcement reversed the firm’s prior ‘‘never‑sell’’ posture and briefly lifted MSTR and STRC prices, ending a nine‑day losing streak as investors welcomed clearer rules for liquidity management.
- The firm still holds about 847,363 BTC bought at an average near $75,650 and sits roughly $13 billion underwater, so selling to raise $1.25 billion would mean selling roughly 20,800 BTC and would crystallize large unrealized losses.
- The move replaces the prior equity‑funding loop that depended on MSTR trading at a premium and buys the company time to cover cash needs, but it increases the company’s dependence on bitcoin’s price and leaves longer‑term solvency risks unresolved.