Strategy Will Now Sell Bitcoin To Pay Its Bills — Here Is What The New Program Means
Strategy (MSTR) has made it official. The company’s board of directors has authorized a formal program to sell Bitcoin (BTC)— a significant shift for a firm that built its entire identity around accumulating and holding the cryptocurrency.
The announcement, filed with the US Securities and Exchange Commission (SEC), outlines a new framework the company is calling “Digital Credit Capital Framework,” designed to shore up its preferred securities, improve liquidity, and protect its long-term Bitcoin position while keeping stockholders whole.
The Framework Behind The Headlines
The filing shows the framework is built around five components that together represent Strategy’s most detailed and structured approach to managing the financial obligations that have grown alongside its Bitcoin treasury.
Those five pieces are a board-approved US dollar reserve policy, a revised dividend policy for its STRC preferred stock, a repurchase program for its preferred securities, a repurchase program for its Class A common stock, and the Bitcoin monetization program that has drawn the most attention.
The dollar reserve policy establishes firm rules around a cash cushion Strategy already maintained but had never been formalized to this degree. As of June 28, 2026, that reserve stands at $2.55 billion — a figure that includes expected cash proceeds from shares sold under the company’s at-the-market offering program.
The STRC dividend policy has also been revised. Going forward, the company intends to evaluate the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock every month, weighing factors including where STRC is trading, prevailing market yields, credit spreads, Bitcoin’s price and volatility, the level of the USD Reserve, and the broader state of capital markets.
On the repurchase side, Strategy has established two separate programs, each authorizing up to $1 billion in buybacks. The first covers its preferred securities — including STRC, STRF, STRD, and STRK — with STRC expected to be the initial focus if management determines repurchases would be accretive and would strengthen the capital structure. The second covers Class A common stock.
Neither will be funded from the USD Reserve. If Bitcoin sales are used to fund them, those sales would fall under the Bitcoin monetization program, which authorizes the board to sell a portion of its massive holdings for three specific purposes.
Strategy Just Changed The Rules On Its Own Bitcoin
The first is to generate up to $1.25 billion in additional proceeds to fund the USD Reserve. The second is to fund preferred dividends and interest payments as they come due, or to replenish the reserve after such payments, when management judges that selling Bitcoin is more advantageous than issuing new shares or pursuing other capital markets transactions.
The third is to fund repurchases of preferred securities or common stock under the buyback programs, including any related taxes, fees, and transaction costs.
The program has no expiration date, can be changed or shut down at any time, and does not commit the company to selling any specific amount of Bitcoin or to funding any particular payment through Bitcoin proceeds. What the framework makes clear is that Strategy is no longer treating its Bitcoin holdings as untouchable.
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