Overview
- Strategy adopted a Digital Credit Capital Framework on June 29 that for the first time lets its board approve conditional sales of up to $1.25 billion of Bitcoin to build a cash reserve.
- The company ringfenced about $2.55 billion in a USD Reserve to cover preferred dividends and interest with a minimum 12‑month floor to protect near‑term payouts.
- Strategy raised the STRC preferred dividend to 12% effective July 1 and authorized buybacks of up to $1 billion each for preferred securities and Class A common stock to support security prices.
- Markets initially rewarded the clarity with roughly 12% jumps in MSTR and STRC, while analysts issued mixed updates including TD Cowen’s cut of its price target to $260 on a lower Bitcoin outlook.
- The move rebalances a long‑running tradeoff: Strategy holds 847,363 BTC with large unrealized losses, so selling would raise needed cash but would also realize losses and reduce the company’s primary reserve asset.