Strategy sets new bitcoin and buyback plan

Strategy announced a Digital Credit Capital Framework on June 29, 2026, outlining a new approach to capital structure and the use of its bitcoin (BTCUSD) holdings. The framework introduces formal policies governing when and how bitcoin can be monetized, and how proceeds may support the company’s balance sheet and securities. The move centralizes key decisions at the board level and defines specific purposes for using bitcoin-derived cash. It marks a notable update to how the company manages both its digital assets and traditional capital instruments.

At the core of the new framework is a Bitcoin Monetization Program that permits the company to sell bitcoin under defined conditions. Permitted uses of sale proceeds include building or replenishing a U.S. dollar reserve, funding preferred stock dividends and interest payments, and financing repurchases of the company’s securities. The program explicitly does not obligate the company to sell any bitcoin, leaving actual monetization decisions to future circumstances. Any use of bitcoin proceeds outside these specified purposes would require additional approval from the board of directors.

As part of the announcement, the company stated it may sell up to $1.25 billion of bitcoin to bolster its U.S. dollar reserve. That reserve is intended to support ongoing obligations such as preferred dividends and interest payments. By tying bitcoin monetization to these targeted objectives, the framework links digital asset management more directly to funding needs and capital actions. The structure sets quantitative boundaries while preserving flexibility through required board oversight for any broader use.

Alongside the monetization framework, the board authorized two new repurchase programs. One program covers Digital Credit Securities, the company’s preferred instruments, allowing for up to $1.0 billion in potential repurchases. The second program authorizes up to $1.0 billion in repurchases of the company’s Class A common stock. Together, the authorizations total up to $2.0 billion across preferred and common equity securities.

Neither repurchase program obligates the company to transact, and both can be modified, suspended, or terminated. This flexibility enables management to adjust actual buyback activity in response to market conditions, liquidity, and other capital priorities. The programs can also be funded, in part, with proceeds from bitcoin sales when such monetization falls within the approved purposes. In this way, the repurchase authorizations and the Bitcoin Monetization Program operate as linked tools within the broader framework.

Chief Executive Officer Phong Le characterized the new framework as a shift in the company’s financial strategy. He said the company is evolving from “one-way capital issuance to active capital management.” This signals an intent to use both issuance and repurchases, alongside selective bitcoin monetization, to manage the capital structure more dynamically. The formal framework, defined uses of bitcoin proceeds, and sizable buyback authorizations together outline the main elements of this strategic change.