01—Abstract
Summary
Summary of the 8-K filed June 29, 2026. Cited figures are marked; the original filing is the authoritative source.
On June 29, 2026, Strategy Inc announced a "Digital Credit Capital Framework" made up of five components: a Board-approved USD Reserve policy, a revised STRC dividend policy, a $1.0 billiona Digital Credit Securities repurchase program, a $1.0 billion class A common stock repurchase program, and a BTC monetization program.
The USD Reserve may be used only for preferred stock dividends and interest expense, and must be kept at a minimum of 12 months of expected annual preferred dividends and interest obligations. As of June 28, 2026, the USD Reserve balance was $2.55 billionb, including expected ATM proceeds not yet settled. The BTC monetization program authorizes sales of bitcoin for up to $1.25 billion of additional USD Reserve funding, plus funding of dividends, interest, and repurchases when management judges it more advantageous than issuing class A common stock or other capital markets transactions.
The company also raised the STRC dividend rate to 12.00% for semi-monthly periods with record dates on or after July 1, 2026, and declared semi-monthly STRC dividends of $0.50c per share payable July 31 and August 15, 2026, contingent on the STRC amended certificate of designations becoming effective by 12:01 a.m. on June 30, 2026. Management stated it will evaluate the STRC rate monthly and will not necessarily raise it solely because STRC trades below its stated amount. The filing states that as of June 28, 2026 the company held 847,363 bitcoin with an aggregate purchase price of $64.10 billion and an average purchase price of $75,651.
No bitcoin was bought during the week of June 22 to June 28, 2026, and no preferred stock was sold under the ATM that week, while 12,669,017 MSTR shares were sold with $1,152.4 milliond in net proceeds. All repurchase and monetization authorizations have no fixed expiration, carry no obligation to act, and may be modified or terminated at any time.
Management said STRC is the expected initial priority for Digital Credit Securities repurchases if they are accretive and strengthen the capital structure. Repurchases will not be funded from the USD Reserve directly, and any funding through BTC sales would fall under the BTC monetization program.
02—Key points
Key Highlights
- Five-part Digital Credit Capital Framework adopted, including a USD Reserve policy, revised STRC dividend policy, two $1.0 billion repurchase programs, and a BTC monetization program.
- USD Reserve balance was $2.55 billion as of June 28, 2026, including expected ATM proceeds not yet settled, and must stay at or above 12 months of expected preferred dividends and interest.
- STRC dividend rate increased to 12.00% for semi-monthly periods with record dates on or after July 1, 2026, with $0.50 per share declared for each of the July 31 and August 15, 2026 payments.
- BTC monetization program authorizes up to $1.25 billion of bitcoin sales to fund the USD Reserve, plus additional sales to fund dividends, interest, and repurchases.
- Company held 847,363 bitcoin as of June 28, 2026, at an aggregate purchase price of $64.10 billion and an average purchase price of $75,651; no bitcoin was acquired in the week of June 22 to June 28, 2026.
- ATM activity for the week of June 22 to June 28, 2026 consisted only of 12,669,017 MSTR shares sold, with $1,152.4 million in net proceeds and $24,257.5 million of MSTR capacity remaining.
- All repurchase and monetization programs are discretionary, have no fixed expiration, and may be modified or terminated at any time.
03—Questions
Frequently Asked Questions
What is the USD Reserve and how can it be used?
The USD Reserve is a previously established U.S. dollar reserve. Under a Board-approved policy, it may be used only to pay preferred stock dividends and interest expense on outstanding indebtedness. Any other use requires Board authorization, and management must keep at least 12 months of current expected annual preferred dividend and interest obligations in the reserve.
Will the STRC dividend rate change going forward?
Yes. The company intends to evaluate the STRC rate monthly based on factors such as STRC trading levels, market yields, credit spreads, bitcoin price and volatility, USD Reserve coverage, and capital market conditions. The rate is not guaranteed to rise just because STRC trades below its stated amount, and dividends remain subject to Board declaration.
How will the Digital Credit Securities and class A common stock repurchases be funded?
Repurchases will not be funded from the USD Reserve. Any funding through bitcoin sales would be made under the BTC Monetization Program, which authorizes sales of bitcoin to fund repurchases of Digital Credit Securities or class A common stock, including related taxes, fees, and expenses.
Are these repurchase and bitcoin sale programs obligatory?
No. The filing states that the repurchase authorizations and the BTC Monetization Program do not obligate the company to buy back any securities, sell any bitcoin, or fund any dividend or interest payment through bitcoin sales. They have no fixed expiration and may be modified, suspended, or terminated at any time.
Are the declared STRC dividends taxable?
The company expects the dividends payable on July 31, 2026 and August 15, 2026 to be characterized as non-taxable returns of capital to the extent of a shareholder's tax basis in STRC for U.S. federal income tax purposes. The filing notes special considerations may apply and advises shareholders to consult their own tax advisors.
04—Continue