Strategy pauses bitcoin buys, establishes $1B digital credit repurchase program as USD reserve tops $2.5B

Bitcoin treasury company Strategy paused its bitcoin acquisitions between June 22 and June 28, according to an 8-K filing with the Securities and Exchange Commission on Monday, instead opting to expand its USD reserve and announce a digital credit repurchase program.

As part of the firm's new Digital Credit Capital Framework, Strategy established a new board-approved policy governing its previously established USD reserve, requiring it be used only to support the payment of preferred stock dividends and interest expense on outstanding indebtedness. Management must maintain a minimum USD reserve equal to at least 12 months of the company's current expected annual preferred stock dividend payments and interest obligations, according to the filing.

Strategy confirmed a reserve balance is $2.55 billion as of June 28, up from the $1.4 billion disclosed as of June 21, including shares sold but not yet settled as of June 26.

While Strategy's USD reserve has been slowly building again, analysts at CryptoQuant said last week that the firm should go further and stop buying bitcoin altogether for now as its dividend obligations have risen while its cash reserves have fallen sharply.

The reserve was increased using proceeds from at-the-market sales of its Class A common stock, MSTR. Last week, Strategy sold 12,669,017 MSTR shares for approximately $1.15 billion. As of June 28, $24.3 billion worth of MSTR shares remain available for issuance and sale under that program, according to the filing.

The company also announced the creation of a Digital Credit Securities Repurchase Program for up to a $1 billion aggregate purchase price of its outstanding digital credit securities, including STRC, STRF, STRD, and STRK. STRC is expected to be the initial priority, with repurchases made from time to time, the firm said.

Strategy also confirmed a new STRC Dividend Policy, whereby it will evaluate the dividend rate monthly based on a range of factors, including STRC trading levels, market yields, credit spreads, the price and volatility of bitcoin, USD Reserve coverage, capital market conditions, and the company's overall capital structure. "The company will not necessarily increase the STRC dividend rate solely because STRC trades below its stated amount," it said.

A similar Class A Common Stock Repurchase Program was also announced, again authorizing up to $1 billion aggregate purchase price of its Class A common stock, not to be funded from the USD reserve.

Finally, Strategy confirmed a new BTC Monetization Program, under which the company may sell bitcoin from time to time to generate up to $1.25 billion in proceeds for the USD reserve, additionally fund preferred stock dividends and interest expenses, or fund repurchases of digital credit securities or Class A common stock.

Strategy still holds a total of 847,363 BTC — worth around $51 billion — bought at an average price of $75,651 per bitcoin for a total cost of around $64.1 billion, including fees and expenses.

That means Strategy's holdings are equivalent to more than 4% of bitcoin's 21 million supply cap, but carry around $13 billion of paper losses at current prices.

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STRC and MSTR plunge

Strategy's co-founder and executive chairman Michael Saylor posted another Strategy bitcoin acquisition tracker chart to X on Sunday with the caption "We're gonna need more charts," seemingly signaling aspects of the new framework rather than the disclosure of fresh bitcoin purchases that similar posts have previously made.

STRC, a variable‑rate, cumulative preferred stock offering monthly dividends with adjustable rates designed to keep it near its $100 par value, had become the primary driver of its bitcoin acquisitions earlier this year. However, it has struggled to regain par since mid-May and therefore has not been used to accumulate additional bitcoin over the past several weeks.

"STRC dividend rate has been increased by 50 bps to 12.00%, effective for record dates in July, 2026," Saylor said Monday. "We will continue to evaluate the rate monthly. Our corporate objective is for STRC to trade over time at $99-$100."

Last week, STRC collapsed to a new low of $71.25 as bitcoin dropped below $60,000, before recovering slightly to $74.57 to close Friday. MSTR didn't fare any better, plunging 30% in just five trading days to end the week at $82.31, its lowest level since early 2024, as investors become increasingly concerned about the firm's market cap to net asset valuation and its numerous bitcoin acquisition programs. MSTR is now down 82% from a peak of $455.90 set in July 2025.

Indeed, Strategy’s enterprise mNAV — calculated by dividing enterprise value, or market cap plus debt and preferred stock minus cash, by the value of its bitcoin holdings — fell below 1 on Friday, joining a cohort of treasury companies whose bitcoin premiums have sharply compressed.

"Strategy expects to remain disciplined in its use of MSTR issuance, particularly when the stock trades at or near 1x mNAV," Saylor said Monday.

Per Bitcoin Treasuries data, 199 public companies have adopted some form of bitcoin acquisition model. Tether-backed Twenty One, Metaplanet, MARA, and Adam Back and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company make up the rest of the top 5, with 43,514 BTC, 40,177 BTC, 36,303 BTC, and 30,021 BTC, respectively.

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