Strategy stock jumps 7% as firm shifts to active capital management

Investing.com -- Strategy Inc. (NASDAQ: MSTR) shares surged 7% on Monday following the announcement of a major corporate pivot. The company unveiled a new "Digital Credit Capital Framework" that marks a transition from a strict buy-and-hold Bitcoin strategy to a dynamic capital management playbook, complete with a $2 billion buyback initiative and a structured Bitcoin monetization plan.

For years, Strategy operated largely on a "one-way" capital runway: aggressively issuing equity and debt to maximize its Bitcoin holdings. Monday’s announcement signals a more flexible approach.

"Strategy is evolving from one-way capital issuance to active capital management," said CEO Phong Le. "We intend to move between issuing securities when capital is attractive and repurchasing securities when our instruments trade at levels that make buybacks accretive."

Key Elements of the New Framework:

• The $2 Billion Buyback Program: The Board has authorized up to $1.0 billion to repurchase the company’s Class A common stock, alongside an additional $1.0 billion dedicated to buying back its Digital Credit Securities.




• Structured Bitcoin Monetization: Breaking from its historical pattern of strictly accumulating cryptocurrency, Strategy has authorized a program to selectively sell Bitcoin. However, the Board has restricted the use of these proceeds to three specific areas: funding securities buybacks, paying preferred stock dividends/interest, and capitalizing its USD Reserve.




• The "12-Month" Safety Cushion: To maintain strict financial health, Strategy established a policy requiring its USD Reserve to always hold at least 12 months’ worth of expected preferred dividends and interest expenses. The reserve currently sits at $2.55 billion—representing a comfortable 17.4 months of coverage against its $1.76 billion in annual obligations.




• STRC Dividend Hike: The regular dividend rate on the company’s Variable Rate Series A Perpetual Stretch Preferred Stock (NASDAQ: STRC) has been increased to 12.00% per annum. Reflecting the company’s new emphasis on flexibility, this rate will be re-evaluated monthly based on market yields, credit spreads, and Bitcoin volatility.

Despite the new authority to sell, Strategy remains one of the world’s largest corporate holders of cryptocurrency. As of June 28, 2026, the company held 847,363 Bitcoin, acquired at an aggregate purchase price of $64.10 billion (an average of $75,651 per Bitcoin).

Wall Street responded favorably to the news, with investors welcoming the added flexibility to defend the stock price through buybacks during market downturns.

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