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Strategy launches a digital credit capital framework, establishes a BTC monetization plan, and two $1 billion repurchase plans

According to the 8-K document submitted to the SEC by Strategy, the company announced the launch of a digital credit capital framework, which includes five core components: dollar reserve policy, adjustment of STRC dividend policy, preferred stock repurchase plan, common stock repurchase plan, and BTC monetization plan.Under the dollar reserve policy, the reserve can only be used to pay preferred stock dividends and debt interest, and management must maintain a reserve sufficient to cover expected dividends and interest expenses for at least the next 12 months. As of June 28, the dollar reserve balance was $2.55 billion.Regarding the STRC dividend, the company will dynamically assess the dividend rate on a monthly basis, considering factors such as trading price, market yield, credit spread, and Bitcoin price volatility, and will not increase the dividend solely because the STRC trading price is below par value. The company also announced an increase in the annualized dividend rate for STRC to 12% from the previous level, effective July 1.In terms of the repurchase plan, the company has established two repurchase authorizations of $1 billion each, to repurchase preferred stocks such as STRC, STRF, STRD, STRK, and Class A common stock, with STRC being the primary target of the preferred stock repurchase plan. Neither of the repurchase plans will utilize dollar reserve funds.In addition, the company's board of directors has authorized the BTC monetization plan, allowing the company to raise up to $1.25 billion by selling Bitcoin, to supplement the dollar reserve, pay preferred stock dividends and interest expenses, or fund the aforementioned repurchase plans.

STRC Breaks Below Par Value Timeline Review: From Bond Repurchase to the Chain Reaction of BTC Decline

According to CoinDesk, the dividend-paying preferred stock STRC issued by Bitcoin treasury company Strategy recently fell below its par value of $100, sparking discussions in the market about its capital structure and solvency. Key timeline events are as follows:May 14: STRC closed at $100 before the ex-dividend date, while the price of Bitcoin remained above $80,000, but market pressure was already evident. During the same period, Strive Asset Management announced that its competing product SATA would adopt a daily dividend mechanism, increasing its yield to 13%, further intensifying competitive pressure on STRC.May 15: Strategy announced a buyback of $1.5 billion of 2029 convertible bonds at approximately an 8% discount. The market then noted that the company's dollar cash reserves used for dividends and debt support were utilized for this transaction.May 26: Strategy confirmed that cash reserves participated in the bond buyback, reducing the fund size to approximately $871 million, which only covers about 6 months of STRC dividend payments, whereas the company's previous target was to maintain coverage for about 24 months.June 1: Strategy sold Bitcoin for the first time since 2022, selling 32 BTC to demonstrate its ability to support dividend payments through asset sales. Following the announcement, MSTR's stock price fell by 5.9%.June 5: Bitcoin fell below $60,000, and STRC dropped to around $90.June 8: Strategy shareholders approved changing STRC to pay dividends twice a month, while the company disclosed that dollar reserves had risen to $1 billion.June 15: Strategy repurchased 1,587 BTC, increasing dollar reserves to $1.1 billion.June 18: STRC fell below $83 during intraday trading, about 17% lower than the target price, marking a new low since its listing in July 2025, ultimately closing at $88.59.Analysis suggests that the core challenge facing STRC lies in its high-yield preferred stock structure being highly correlated with the Bitcoin cycle. In a Bitcoin bear market environment, investors are not only reassessing BTC itself but also beginning to reevaluate the financial products and capital systems built around Bitcoin.
2026-06-20
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