Strategy sets $1 billion repurchase plan after MSTR and STRC plunge

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Strategy paused Bitcoin purchases

Highlights

Strategy paused Bitcoin purchases from June 22 to June 28.
Its U.S. dollar reserve rose to $2.55 billion.
The company created a $1 billion digital credit repurchase program.
MSTR fell 30% last week, while STRC hit a record low.

Bitcoin buying takes a back seat

In an 8-K filing with the Securities and Exchange Commission, Strategy said it made no Bitcoin acquisitions between June 22 and June 28. Instead, the company expanded its U.S. dollar reserve and introduced a new Digital Credit Capital Framework meant to govern how that cash can be used, The Block reports.

Under the new policy, the reserve may be used only to support preferred stock dividend payments and interest expenses on outstanding debt. Management must keep at least 12 months of expected annual preferred stock dividends and interest obligations in reserve.

The cash balance rose from $1.4 billion as of June 21 to $2.55 billion as of June 28, including shares sold but not yet settled as of June 26. Strategy raised the reserve through at-the-market sales of its Class A common stock, MSTR, selling 12.7 million shares last week for about $1.15 billion. The company still has $24.3 billion of MSTR shares available for issuance under that program.

Repurchases replace accumulation

Strategy also approved a Digital Credit Securities Repurchase Program of up to $1 billion, covering STRC, STRF, STRD and STRK. STRC is expected to be the initial focus.

The company separately adopted a new STRC dividend policy, under which it will review the rate monthly based on trading levels, credit spreads, Bitcoin volatility, reserve coverage and broader capital-market conditions. The STRC dividend rate was raised by 50 basis points to 12% for July record dates.

The move follows a steep selloff. STRC fell to a low of $71.25 last week as Bitcoin dropped below $60,000, before closing Friday at $74.57. MSTR dropped 30% over five trading days to $82.31, its lowest level since early 2024. The stock is now down 82% from its July 2025 peak of $455.90.

A balance sheet test for Bitcoin treasuries

Strategy remains the dominant Bitcoin treasury company, holding 847,363 BTC, worth about $51 billion at current prices. The coins were bought at an average price of $75,651 for a total cost of about $64.1 billion, leaving roughly $13 billion in paper losses.

That scale makes Strategy a test case for the wider Bitcoin treasury model. Its holdings represent more than 4% of Bitcoin’s 21 million supply cap, but its enterprise mNAV fell below 1 last week, showing that investors no longer assign the same premium to its Bitcoin exposure. Strategy also said it may sell Bitcoin to raise up to $1.25 billion for reserves, dividends, interest expenses or repurchases. For a company built around accumulation, that marks a more defensive phase.

Earlier, we reported that CryptoQuant urges Strategy to pause Bitcoin buying.

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