Overview
- The company introduced the Digital Credit Capital Framework on June 29, which authorizes up to $1.25 billion of conditional Bitcoin monetization, raises the STRC preferred dividend to 12%, and approves repurchase programs for common and preferred shares.
- Strategy holds roughly 847,363 BTC and reported multibillion-dollar unrealized losses that have pushed its enterprise value below the market value of its Bitcoin holdings.
- Management has continued programmatic Bitcoin purchases through the downturn, including sizable buys in May and June, while also building a U.S. dollar reserve to cover dividend obligations.
- CEO Phong Le bought 11,000 STRC preferred shares near record lows and analysts gave mixed responses, with some firms keeping Buy ratings and raising targets and others cutting targets while noting reduced upside.
- Market observers warn the framework shifts Strategy from a near‑permanent buyer to a potential intermittent seller, creating two‑way flow risk for Bitcoin price stability and making preferred dividend coverage and cash reserves key metrics to watch next.