Strategy opens the door to selling bitcoin under new capital plan. Here's what it means
CoinDesk 2026-06-29 14:11:01
Context: MicroStrategy, the world's largest publicly traded company holding bitcoin, has authorized a new bitcoin monetization program as part of its Digital Credit Capital Framework, allowing the company to sell a portion of its bitcoin holdings to strengthen its balance sheet and fund various activities. The program was announced on June 29, 2026, and gives MicroStrategy the flexibility to sell bitcoin to support its perpetual preferred securities, fund stock buybacks, and build a USD Reserve. This move is part of a broader capital allocation strategy that also includes increasing the dividend on MicroStrategy's preferred stock.
Key Facts
- MicroStrategy's new bitcoin monetization program authorizes the company to sell up to $1.25 billion of bitcoin to build the company's USD Reserve, which is used to fund preferred stock dividends and interest payments.
- The program also authorizes MicroStrategy to sell bitcoin to finance up to $1 billion of Digital Credit Securities repurchases and up to $1 billion of Class A common stock buybacks, with no expiration date for the repurchase programs.
- The filing does not specify an overall limit on bitcoin sales, instead authorizing BTC monetization for specific purposes, and any monetization beyond the board-approved purposes would require additional board approval.
- MicroStrategy's founder and executive chairman, Michael Saylor, stated that the framework is designed to strengthen credit quality and enable the company to reduce expected preferred stock dividend payments when accretive, while maintaining its commitment to long-term Bitcoin exposure.
- The company's shares, MSTR, are up 3% following the announcement, while bitcoin trades below $60,000, as part of a broader capital allocation strategy that also includes increasing the dividend on MicroStrategy's preferred stock STRC to 12%, from 11.5%.