Michael Saylor’s Strategy has paused its Bitcoin (BTC) acquisitions and announced plans to bolster its USD reserves and approve a Digital Credit Capital Framework to manage capital.
The Bitcoin treasury company is moving to overhaul its financing model, giving itself the power to buy back securities and sell up to $1.25 billion in BTC as it attempts to preserve liquidity and mitigate market pressure.
Digital Credit Capital Framework
The company disclosed the pause in acquisitions in an 8-K filing with the United States Securities and Exchange Commission (SEC). Instead of further acquisitions, Strategy plans to expand its USD reserves under a new Digital Credit Capital Framework. As part of the framework, the company has established a new policy to govern its USD reserve. The new policy mandates that the reserve be used only to support stock dividend obligations and interest payments on outstanding debt. The policy also mandates that the minimum USD reserve must cover at least 12 months of its expected annual preferred stock dividend and interest obligations.
Strategy disclosed a reserve balance of $2.55 billion as of June 28, up from $1.4 billion on June 21. The company is using proceeds from the at-the-market sale of MSTR, its Class A common stock, selling 12,669,017 MSTR shares for $1.15 billion. According to Strategy’s filing, it has $24.3 billion worth of MSTR shares available for issuance.
Digital Credit Securities Repurchase Program
Strategy also announced the Digital Credit Securities Repurchase Program, which allows it to repurchase up to $1 billion of its preferred securities, including STRC, STRF, STRD, and STRK. The program will initially focus on STRC, making periodic repurchases of the preferred stock. The company also announced a STRC dividend policy to evaluate the monthly dividend rate based on market yield, STRC trading levels, credit spreads, USD reserve coverage, capital market conditions, Bitcoin price and volatility, along with Strategy’s capital structure. The company stated in its filing, “The company will not necessarily increase the STRC dividend rate solely because STRC trades below its stated amount.”
It also announced a Common Stock Repurchase Program, authorizing the company to purchase up to $1 billion of its Class A common stock. However, these purchases will not be covered by the USD reserve.
STRC And MSTR Struggle
Strategy currently holds 847,363 BTC, valued at $50.9 billion at current prices. These coins were purchased at an average price of $75,651 per coin, bringing the total acquisition cost to $64.1 billion, saddling the company with a paper loss of $13.1 billion. Strategy’s STRC is a variable-rate cumulative preferred stock offering that offers monthly dividends. Adjustable rates are designed to keep it close to its $100 par value. The asset had become the driving force behind Strategy’s aggressive Bitcoin acquisitions. However, it has struggled to trade near $100 since mid-May, taking a backseat in Strategy’s recent acquisitions.
STRC fell to a new low of $71.25 as BTC plunged below $60,000. MSTR followed a similar trajectory, falling 30% in five days to $82.31, its lowest level since 2024. The Class A common stock is trading 82% lower than its July 2025 high of $455.90.
mNAV Falls Below 1
Strategy’s mNAV also fell below 1 on Friday, putting more pressure on the Bitcoin treasury company. Several Bitcoin treasury companies have seen their mNAV trade close to or slip below 1, according to data from mnav.com. Strategy executive chairman Michael Saylor stated he expects Strategy to be disciplined when issuing MSTR, especially when the company is trading near 1x mNAV.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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