Strategy shares rebound after Bitcoin valuation scare and corporate pivot

Investing.com -- Strategy shares have risen 6.5% in premarket trading on Monday after the company unveiled a capital management overhaul, reversing a slide that saw its market value dip below the worth of its Bitcoin holdings.

The company's ratio of market capitalization to the net asset value of its Bitcoin treasury had slipped below one and prompted sharp commentary from industry observers.

Tal Fromchenko, Founder and CEO of LEVERAGED, said "the premium that powered their entire buy-more-BTC engine is gone," adding that the episode is "a good reminder that buying Bitcoin through a third-party vehicle and actually owning Bitcoin are very different things."

However, Strategy has now announced a Digital Credit Capital Framework, a five-component plan encompassing a $1 billion preferred securities buyback, a $1 billion common stock repurchase program, a structured Bitcoin monetization plan and a revised dividend policy for its STRC preferred stock, raised to 12%.

CEO Phong Le said the company is "evolving from one-way capital issuance to active capital management," while Founder Michael Saylor said the framework is "designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive."

Strategy's USD Reserve stands at approximately $2.55 billion, representing roughly 17.4 months of preferred dividend and interest coverage. Combined with $1.25 billion of board-authorized Bitcoin monetization capacity, total liquidity coverage reaches approximately 25.9 months.

Mark Zalan, CEO of GoMining, framed the broader shift constructively, saying the episode reflects "the bitcoin treasury thesis maturing" rather than failing, as markets increasingly separate Bitcoin's value from "the leveraged corporate structures built around it."

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