Breaking: Strategy Eyes Selling $1.25B Bitcoin To Buyback Digital Credit Amid $1.15B MSTR Sale

Michael Saylor-led Strategy has announced a new capital allocation framework that could sell up to $1.25 billion in Bitcoin holdings and repurchase its Digital Credit Securities. Amid this, the firm put a halt to its BTC buying frenzy and also sold $1.15 billion worth of the MSTR stock.

Strategy Could Sell Up To $1.25 Billion In Bitcoin

The company announced on Monday, June 29, that it has implemented a new Digital Credit Capital Framework to boost the company’s preferred securities and improve liquidity. It also noted that they’re focused on maintaining long-term exposure to Bitcoin, and generate long-term shareholder value.

Its core component is a new BTC Monetization Program that permits Strategy to trade Bitcoin for various capital management reasons, not just for accumulation.

The program will allow Strategy to monetize Bitcoin and generate up to $1.25 billion to be held in the USD Reserve. It would aim to pay preferred stock dividends and interest payments, contribute to cash reserves and fund new repurchase programs that are approved.

At the same time, the firm gave itself permission to repurchase up to $1 billion worth of Digital Credit Securities such as STRC, STRF, STRD and STRK, with STRC likely to be a first target if management decides the buyback of the securities will enhance the company’s capital structure.

If these repurchases are accomplished by selling Bitcoin, they will be done with the BTC Monetization Program. However, Strategy noted that it is not obligated to sell Bitcoin under this scheme. Hence, they might choose to not offload their BTC stash at all. Nonetheless, the recent 32 BTC sale has led to concerns about further selloffs as the new program was revealed.

BTC Buying Spree Paused Amid Massive MSTR Stock Sale

The announcement came at a time when Strategy paused its Bitcoin buying. During the week ending June 28, the company made no Bitcoin purchases, maintaining its total holdings at 847,363 BTC, which it bought for $64.10 billion. Meanwhile, Strategy sold 12.67 million MSTR shares under its at-the-market offering program, netting about $1.152 billion in proceeds.

In addition, Strategy increased the annual dividend amount per share paid on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12% for dividends payable beginning July 1, 2026. This move is aimed at recovering the STRC stock price towards the $100 par value. In the pre-market session today, the STRC stock rocketed 9.48% to $81.64, which shows investor confidence in the new framework.