Strategy Unveils New Bitcoin Capital Framework to Bolster Liquidity as Preferred Shares Come Under Pressure

Strategy has rolled out a new capital management framework designed to shore up U.S. dollar liquidity and expand funding options, as investors scrutinize the company's ability to meet rising preferred dividend obligations without undermining shareholder value or its long-held Bitcoin thesis. Galaxy Head of Research Alex Thorn said the plan materially improves financial flexibility after weeks of declines in STRC, MSTR and Bitcoin intensified market concerns. At the center of the update is what Thorn described as a Digital Credit Capital Framework, built around five measures. Strategy will adopt a board-approved U.S. dollar cash reserve policy, revise STRC dividend rules, and introduce a Bitcoin monetization program that allows the company to sell, lend, or use options on Bitcoin if needed while maintaining its long-term investment strategy. The framework also authorizes up to $1 billion in preferred share repurchases and an additional $1 billion in MSTR share buybacks. The board also increased STRC's annual dividend rate to 12% from 11.5% for payment periods beginning after July 1. Ahead of the announcement, STRC had slid below $83 on June 18 and later hit a record low of $71.25, while MSTR and Bitcoin also weakened. Markets reacted swiftly. Thorn noted MSTR rose 12.6% following the announcement, while STRC gained 12.2%. By Thursday afternoon, STRC traded around $87, still below its $100 stated value. MSTR moved toward $100, and Bitcoin rebounded to about $61,763. Thorn said the market's main focus has been on dollar liquidity rather than Strategy's underlying asset base. He highlighted that the company holds about 847,000 Bitcoin, making it the second-largest known holder after Satoshi Nakamoto. He added that Strategy reinforced its position by raising more than $1 billion through common stock sales and by formalizing a minimum cash reserve policy. On Bitcoin monetization, Thorn said the new program leaves the door open to sales if necessary, though outright selling could undercut Strategy's long-standing narrative centered on permanent Bitcoin exposure. He also suggested the company could generate income from a portion of its holdings through lending or carefully managed options strategies, reducing reliance on spot sales while market conditions remain weak.