Strategy (MSTR), the largest publicly traded corporate holder of bitcoin, has formally authorized a new bitcoin monetization program that gives management room to sell part of its BTC holdings for defined capital purposes. The plan, announced Monday under the company’s new Digital Credit Capital Framework, is intended to support the balance sheet, back perpetual preferred securities, and fund share repurchases.
This is the company’s first formal approval to monetize its bitcoin treasury for specific uses. Strategy said it is not required to sell any bitcoin, but management now has board approval to do so if it determines that selling BTC is more attractive than issuing Class A common stock or using other financing routes.
Up to $1.25 billion in BTC sales for the USD Reserve
The filing does not impose a fixed ceiling on total bitcoin sales. Instead, it authorizes monetization for named purposes. One of the main items is the sale of up to $1.25 billion in bitcoin to build Strategy’s USD Reserve, which is used to fund preferred stock dividends and interest payments. The company may also sell bitcoin again to replenish that reserve after distributions are made.
At current prices, raising the full $1.25 billion through bitcoin sales would require the sale of about 20,800 BTC, equal to roughly 2.5% of Strategy’s 847,363 BTC holdings. That estimate applies only to the reserve component. The broader framework still permits additional bitcoin sales tied to buybacks, dividends, and interest obligations.
Another $2 billion of authorization tied to repurchases
The program also allows Strategy to sell bitcoin to finance up to $1 billion of Digital Credit Securities repurchases and up to $1 billion of Class A common stock buybacks. Any monetization beyond those approved uses would need extra board approval. Both repurchase programs have no expiration date.
The capital framework reaches beyond bitcoin sales. Strategy also raised the dividend on its STRC preferred stock to 12% from 11.5%, adopted a formal USD Reserve policy, and set a requirement to maintain enough cash to cover at least 12 months of preferred stock dividends and interest obligations.
Saylor says framework keeps long-term bitcoin exposure intact
Founder and Executive Chairman Michael Saylor said Digital Credit needs liquidity, discipline, and active capital management. He said the framework is designed to improve credit quality and let the company reduce expected preferred stock dividend payments when accretive, while still maintaining its commitment to long-term bitcoin exposure.
After the announcement, MSTR shares were up 3%. Bitcoin was trading below $60,000.