Strategy raises STRC dividend to 12%, locks in $3B reserve plan to cover preferred stock obligations

Strategy has authorized up to $2 billion in stock repurchases and created a program allowing it to sell Bitcoin to strengthen its cash position and fund corporate obligations.

Strategy announces a Digital Credit Capital Framework designed to strengthen Digital Credit, enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation. $MSTR $STRC

— Michael Saylor (@saylor) June 29, 2026

The company established two separate repurchase programs. One authorizes up to $1 billion in purchases of its Class A common stock. The other covers up to $1 billion of its preferred securities, including STRC, STRF, STRD, and STRK.

Strategy said STRC will initially receive priority when management believes repurchases would improve its capital structure. Buying preferred shares below their stated value could reduce the company’s future dividend obligations while supporting prices across its credit products. Neither authorization requires Strategy to purchase any securities, and both programs have no fixed expiration date.

The company also approved a Bitcoin monetization program that allows it to sell $BTC for three main purposes.

Strategy may generate up to $1.25 billion to add to its dollar reserve. It may also sell Bitcoin to cover preferred stock dividends and debt interest, replenish cash used for those payments, or finance purchases under the new repurchase programs.

The authorization does not require Strategy to sell any Bitcoin. Management will determine whether $BTC sales are more advantageous than issuing common stock or raising capital through other securities. Any Bitcoin sales outside the listed purposes or above the current authorization would require additional board approval.

Strategy held a $2.55 billion dollar reserve as of June 28. The company adopted a policy requiring management to maintain enough cash to cover at least 12 months of expected preferred dividends and interest payments. Its current annual obligations are approximately $1.76 billion, meaning the reserve provides about 17.4 months of coverage.

Including the $1.25 billion in authorized Bitcoin sales, Strategy said it has access to approximately $3.8 billion in total liquidity, enough to cover nearly 25.9 months of current preferred dividend and interest obligations.

The company also increased STRC’s annual dividend rate from 11.5% to 12%, effective for record dates beginning July 1. Strategy intends to review the rate monthly as it seeks to move STRC closer to its $100 stated value.

STRC rose about 7.2% to $79.92 on Monday following the announcement, while Strategy shares gained roughly 6.7% to $87.81. Bitcoin traded near $59,710.

The framework comes as Strategy’s enterprise value fell below the value of its Bitcoin holdings for the first time. Its mNAV ratio recently reached 0.99, making additional common stock issuance less attractive and increasing pressure on the company to find other ways to manage its balance sheet.

Strategy sold approximately 12.7 million common shares between June 22 and June 28, generating $1.15 billion in net proceeds. It made no Bitcoin purchases during the period and continued to hold 847,363 $BTC acquired for $64.1 billion at an average price of $75,651.

The new framework marks a move away from relying almost exclusively on issuing securities to acquire Bitcoin. Strategy can now repurchase discounted securities or monetize part of its $BTC position when management determines those actions would be more efficient than issuing additional common shares.