Strategy has rolled out a new Digital Credit Capital Framework, which it says is designed to strengthen its preferred Digital Credit securities and support long-term value creation. The company disclosed the plan in an 8‑K filing on June 29, alongside updates on dividends and buybacks. It comes after two years of rapid growth in Digital Credit, including billions raised through Bitcoin‑backed preferred shares such as STRC.
Under the framework, Strategy aims to manage the amount of Digital Credit it issues relative to its Bitcoin holdings and cash reserves. The goal is to keep funding costs attractive while avoiding over-leverage during sharp drawdowns in the Bitcoin market. Company materials describe the framework as a guide for capital allocation decisions across Digital Credit, traditional debt, common equity, and Bitcoin itself.
Liquidity Buffer and BTC Monetization Program
A key part of the framework is a larger U.S. dollar reserve for Digital Credit obligations. Strategy says it now holds about $2.55 billion in USD reserves, which Executive Chairman Michael Saylor said “should cover the dividend payments for 17.4 months.” The company has pledged to “maintain” at least 12 months of coverage and may raise that buffer as markets shift.
To keep the reserve funded, Strategy created a BTC Monetization Program. The program lets the firm sell a limited amount of Bitcoin to top up the reserve. It can also pay dividends and interest or repurchase Digital Credit securities and MSTR stock.
The company capped Bitcoin sales for reserve building at $1.25 billion. It stressed that buybacks will not come from the USD reserve.
Even while it sets aside more cash, Strategy says the framework is meant to preserve long-term Bitcoin exposure for common shareholders. In a recent update, Saylor said the model gives it “multiple levers to optimize our balance sheet and respond to market conditions” while focusing on “increasing Bitcoin Per Share for our common shareholders over the long term.” As of late May, Strategy held 843,738 Bitcoin and reported 220,900 sats per share.
Digital Credit stays central to that plan. At the Bitcoin 2026 conference, Saylor described STRC as a Bitcoin‑backed “digital credit instrument.” It turns Bitcoin’s long‑term capital return into monthly income for yield‑focused investors.
By pairing these products with the new capital framework and reserve policy, Strategy aims to keep scaling Digital Credit. It also aims to ride out downturns and grow its Bitcoin stack over many cycles.
READ MORE: Top Crypto Stocks to Watch This Week: MSTR, BMNR, COIN, IREN
