Strategy Inc. just did something it rarely does: acknowledged that holding Bitcoin in massive quantities requires, well, an actual plan for when things get bumpy.
On June 29, the company announced what it calls a “Digital Credit Capital Framework,” a multi-pronged liquidity strategy designed to stabilize its stock and securities while keeping its long-term Bitcoin thesis intact. The announcement snapped a nine-day losing streak.
What the framework actually does
The new framework has three main pillars. First, a BTC monetization program that allows Strategy to sell up to $1.25B in Bitcoin. Second, the company authorized up to $2B in buybacks, split evenly between MSTR common stock and its STRC preferred shares, at up to $1B each. Third, the STRC preferred stock dividend rate is set to jump to 12% annually, effective July 1, with the goal of pinning STRC’s trading price close to its $100 par value.
The balance sheet behind the plan
