Strategy Inc. MSTR shares (previously known as MicroStrategy) rose 2.7% in trading on Monday after the company announced a broad capital management overhaul.
The plan aims to strengthen liquidity, support its preferred securities, and maintain long-term exposure to Bitcoin.
The announcement follows a period of pressure on the company’s valuation.
Strategy’s market capitalisation had fallen below the value of its Bitcoin holdings, causing its market-cap-to-Bitcoin-net-asset-value ratio to slip below one.
The development prompted criticism from market participants who questioned the sustainability of the company’s capital model.
Five-part capital framework announced
Strategy said the new framework represents a shift in how it manages its capital structure.
The plan includes a $1 billion preferred securities repurchase programme, a separate $1 billion Class A common stock buyback programme, a structured Bitcoin monetisation programme, a revised dividend policy for STRC preferred stock, and a formal USD Reserve policy.
Chief Executive Officer Phong Le said the company is “evolving from one-way capital issuance to active capital management.”
Founder Michael Saylor said the framework is “designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive.”
The company establishes a reserve policy
Strategy said its USD Reserve stood at approximately $2.55 billion as of June 28, 2026.
Under the newly approved board policy, those funds may only be used to support preferred stock dividend payments and interest on outstanding debt.
The company has established a minimum reserve requirement equal to 12 months of annual preferred stock dividends and interest expenses, representing approximately $1.76 billion.
When combined with $1.25 billion of board-authorised Bitcoin monetisation capacity, Strategy said total preferred stock dividend liquidity coverage reaches approximately $3.80 billion, or around 25.9 months of coverage.
Dividend raised and repurchase programmes introduced
As part of the framework, Strategy increased the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12% annually.
The higher rate will apply to semi-monthly periods with record dates on or after July 1, 2026.
The company said its objective is for STRC to trade close to its stated value of $100 over time.
Strategy also established a $1 billion repurchase programme covering its Digital Credit Securities, including STRC, STRF, STRD and STRK, with STRC expected to receive initial priority.
A separate $1 billion Class A common stock repurchase programme was announced alongside the preferred securities buyback.
Bitcoin monetisation plan adds capital flexibility
The board also authorised a structured Bitcoin monetisation programme.
Under the programme, Strategy may sell Bitcoin for three approved purposes.
These include generating up to $1.25 billion to support the USD Reserve, funding preferred stock dividends and interest expenses when management determines selling Bitcoin is more advantageous than issuing equity, and financing repurchases of Digital Credit Securities or common stock.
The company said any Bitcoin monetisation outside these approved purposes would require additional board authorisation.
Chief Financial Officer Andrew Kang said, “Bitcoin is capital. This program gives Strategy the flexibility to use a portion of its BTC Reserve to strengthen Digital Credit, fund dividend payments and interest expense, and fund accretive repurchases when BTC monetization is more advantageous than issuing common equity.”
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