Strategy Launches Bitcoin Monetization Plan as Saylor Unveils Buybacks and Dividend Boost

Strategy has introduced a new capital management framework that authorizes up to $2 billion in share buybacks while also establishing a mechanism that could allow future bitcoin sales to support liquidity needs.

The company (MSTR) announced a “Digital Credit Capital Framework” on Monday, outlining a set of initiatives aimed at reinforcing its preferred securities, preserving long-term bitcoin exposure, and enhancing balance sheet flexibility.

As part of the plan, Strategy has already implemented a board-approved U.S. dollar reserve policy and raised the annual dividend on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12%, effective from dividend periods starting July 1. The firm said its dollar reserve now totals roughly $2.55 billion, covering about 17.4 months of dividend and interest obligations.

The board also approved, without obligation, up to $1 billion in repurchases of Digital Credit Securities and up to $1 billion in buybacks of Class A common shares. These programs have no set expiry and may be adjusted, paused, or cancelled depending on market conditions and management discretion.

In addition, Strategy launched a Bitcoin Monetization Program, giving the company the flexibility to sell BTC when deemed strategically beneficial. Proceeds can be used to strengthen the USD reserve, fund dividend and interest payments, or support share buybacks, though the company stressed there is no requirement to sell bitcoin under the framework.

Executive Chairman Michael Saylor said the initiative is designed to enhance Strategy’s credit profile while maintaining bitcoin as its core treasury asset. CEO Phong Le added that the framework marks a shift toward more active capital management, balancing issuance and repurchases based on market conditions.

Following the announcement, MSTR shares rose about 6% in pre-market trading, STRC climbed 9%, and bitcoin edged higher to around $60,500.