Strategy authorizes buybacks and bitcoin sales, raises STRC dividend
Strategy adopted a new capital framework that permits securities repurchases and limited bitcoin sales while raising STRC’s annualized dividend rate to 12%. The company also expanded its dollar reserve to support dividend and interest payments.
What happened?
Strategy adopted a new capital framework that permits securities repurchases and limited bitcoin sales while raising STRC’s annualized dividend rate to 12%. The company also expanded its dollar reserve to support dividend and interest payments.
Why it matters
Strategy has authorized repurchases of its preferred securities and MSTR common stock as part of a broader capital framework, while approving a program that may monetize bitcoin for specified funding needs. The company also raised the annualized dividend rate on its STRC preferred stock by 50 basis points to 12%, effective for July 2026 record dates.
Strategy has authorized repurchases of its preferred securities and MSTR common stock as part of a broader capital framework, while approving a program that may monetize bitcoin for specified funding needs. The company also raised the annualized dividend rate on its STRC preferred stock by 50 basis points to 12%, effective for July 2026 record dates.
The changes give Strategy more flexibility to manage its capital structure and payment obligations during periods of market stress. They also mark a notable adjustment for a company built around accumulating and retaining a large bitcoin position, although the program does not require any bitcoin sales or securities repurchases.
Under the bitcoin monetization program, Strategy may generate up to $1.25 billion for its US dollar reserve. Bitcoin may also be sold to cover preferred dividends and interest expenses, replenish the reserve when management considers that preferable to raising capital, or finance approved buybacks and related costs.
Strategy said its dollar reserve stood at $2.55 billion, equivalent to about 17.4 months of dividend coverage. The company intends to maintain at least 12 months of coverage, with the reserve restricted to dividend and interest payments.
The revised STRC policy continues to target a trading range of $99 to $100 per share, with the dividend rate reviewed monthly. Strategy’s board retains discretion over dividends, repurchases and bitcoin monetization, and the newly authorized programs have no fixed expiration date.