Strategy Unveils $3.8B Capital Plan as Bitcoin Treasury Firm Boosts STRC Dividend to 12%
Strategy Inc. has introduced a major capital management overhaul aimed at improving financial flexibility while continuing to build around its Bitcoin treasury strategy.
The company, led by Executive Chairman Michael Saylor, announced its new “Digital Credit Capital Framework,” a plan designed to balance shareholder returns, debt obligations, and its long-term Bitcoin exposure. Following the announcement, Strategy shares climbed in pre-market trading as investors reacted to the company’s updated approach.
The framework includes a higher dividend for its STRC preferred stock, a combined $2 billion share repurchase authorization, and a Bitcoin monetization program that allows limited BTC sales under specific conditions.
At the core of the plan is a $2.55 billion USD reserve designed to cover preferred dividend payments and interest expenses. Strategy currently faces around $1.76 billion in annual dividend and debt-related obligations, meaning the reserve provides more than a year of financial coverage.
The company said its reserve must maintain at least 12 months of coverage, with any drop below that level requiring approval from the board. Funds from the reserve will primarily be dedicated to dividend payments and debt interest obligations.
Strategy is also counting its Bitcoin monetization capacity as an additional liquidity resource. Combined with the cash reserve, the company estimates it has access to approximately $3.8 billion in coverage, representing nearly two years of preferred dividend and interest obligations.
As part of the new framework, Strategy increased the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12%, up from 11.5%. The new rate applies to dividend periods beginning with record dates on or after July 1, 2026.
The company said it aims for STRC to trade near its $100 stated value and will review the dividend rate monthly based on market conditions, Bitcoin volatility, credit spreads, and the company’s balance sheet position.
Strategy also approved two separate $1 billion buyback programs. One will target its Digital Credit Securities, including STRC and other preferred stock series, while the second will focus on Class A common stock.
The company emphasized that neither buyback program guarantees purchases and can be adjusted, paused, or canceled depending on market conditions.
CEO Phong Le described the move as a transition toward more active capital management, saying Strategy plans to issue securities when conditions are favorable and repurchase them when valuations create opportunities.
The Bitcoin Monetization Program gives Strategy the ability to sell portions of its BTC holdings for three main purposes: maintaining its USD reserve, covering dividend and interest obligations, and funding potentially accretive stock repurchases.
The company clarified that Bitcoin sales are not mandatory and any additional uses outside the approved categories would require further board approval.
CFO Andrew Kang said the framework allows Strategy to use Bitcoin as a flexible capital asset while preserving its long-term treasury strategy.
Michael Saylor reiterated that Bitcoin remains the company’s primary reserve asset, stating that the new framework is intended to improve liquidity, strengthen credit quality, and provide more options for managing the company’s growing financial structure.