Strategy Launches Digital Credit Framework, Starts $1.25 Billion Bitcoin Plan

Strategy has made Bitcoin the centerpiece of its corporate treasury strategy, financing purchases through sales of common and preferred stock. The model championed by Michael Saylor has tied the company’s valuation closely to the cryptocurrency while creating recurring dollar obligations, including preferred-stock dividends. The latest disposal shows Strategy using part of its Bitcoin holdings to balance shareholder payouts, share-price support and liquidity needs.

In the week ended Aug. 2, Strategy sold 1,638 Bitcoin for about $104.7 million, its first sale since June, reducing its holdings to 842,138 tokens. The company allocated roughly half of the proceeds to preferred-stock dividends and the remainder to repurchases of STRC shares. The transaction extended Strategy’s estimated dollar liquidity runway to 2.3 years, giving it more capacity to meet cash commitments without relying solely on new capital issuance.

Strategy has evolved from an enterprise software company into the world’s largest institutional holder of bitcoin since adopting the cryptocurrency as its primary treasury reserve asset in 2020. Its ambitions now extend beyond accumulating bitcoin to issuing Digital Credit securities and yield products. That shift makes dependable cash flow, liquidity and dividend coverage increasingly important for traditional investors who may want bitcoin-linked returns without taking the asset’s full volatility.

Chief Executive Officer Phong Le said on August 11, 2026, that Strategy had built a $4.75 billion cash cushion, enough to cover about 2.7 years of dividend payments. Le said bitcoin ownership alone was insufficient for conventional investors, who place greater weight on liquidity and predictable cash distributions. The reserve forms part of Strategy’s effort to expand its Digital Credit business and develop lower-volatility, bitcoin-linked yield products for a broader pool of institutional capital.

Strategy (MSTR) has long financed Bitcoin purchases through debt and preferred-share issuance, tying its stock price and balance sheet closely to the cryptocurrency. Selling Bitcoin to fund preferred-share dividends broke with market expectations that the company would only buy and never sell. The move has also renewed scrutiny of its liquidity management and Bitcoin-holding strategy.

Strategy recently sold 3,588 Bitcoin for about $216 million, its largest disposal on record, while Bitcoin remained near $63,000. The cryptocurrency’s decline also led the company to recognize more than $8.3 billion in unrealized losses in the second quarter of 2026. Grayscale recommended that Strategy sell $3 billion worth of Bitcoin to rebuild market confidence.

Strategy, formerly MicroStrategy, has become a bellwether for corporate bitcoin exposure by funding purchases through common stock, convertible debt and preferred securities. Its Digital Credit Capital Framework matters because it broadens the company’s playbook from largely one-way issuance to active, two-way capital management. The structure allows Strategy to build dollar reserves, repurchase discounted securities and monetize bitcoin when advantageous, offering a response to volatility in MSTR and preferred shares including STRC.

Strategy unveiled the five-part framework on June 29, 2026, and Benchmark reiterated its Buy rating and $570 price target on June 30. The target implied about 515% upside from MSTR’s June 29 close of $92.68. The plan included a $2.55 billion cash reserve, $1 billion authorizations for both common-share and Digital Credit Securities repurchases, and authority to monetize as much as $1.25 billion of bitcoin. Strategy held 847,363 bitcoin, while the reserve covered about 17.4 months of expected preferred dividends and interest.

Strategy, formerly MicroStrategy, has raised funds through stock and debt offerings to buy Bitcoin, making the crypto asset the centerpiece of its corporate treasury. Executive Chairman Michael Saylor has long advocated holding rather than selling. His new openness to disposing of part of the position has implications for the company’s cash flow, debt management and shareholders’ exposure to Bitcoin price risk.

Saylor said in a recent interview that it was “not unlikely” Strategy would sell some Bitcoin by the end of 2026, but did not disclose the expected amount or value. The company plans to manage cash flow using equity and credit instruments while operating under a diversified model, with the goal of maximizing Bitcoin holdings per share by 2033.

Strategy uses its STRC perpetual preferred stock to raise capital, creating an ongoing funding channel for Bitcoin purchases. Its at-the-market program allows the company to issue additional shares depending on market conditions. STRC’s liquidity and market demand will directly affect Strategy’s ability to expand its Bitcoin holdings, as well as investors’ assessment of its financing ceiling and dilution risks.

The latest reports revised STRC’s Monday trading volume to $1.5 billion from an initial estimate of $1.16 billion and said it funded Strategy’s purchase of 11,707 Bitcoin, above the earlier estimate of 7,800. Trading volume could set another record on Tuesday, while Delphi Digital warned that the STRC financing model faces a $28 billion scale ceiling.

Strategy, formerly known as MicroStrategy, has continued raising funds through equity and debt instruments to buy Bitcoin under Michael Saylor, making BTC a core asset. The company recently raised capital through STRC perpetual preferred stock carrying an 11.5% dividend rate. Saylor said an annual Bitcoin gain of more than 2% would be enough to cover the dividend, underscoring the company's highly leveraged capital strategy.

Strategy added 3,468 Bitcoin on April 10, according to the latest report, which did not disclose the dollar value or average purchase price of the transaction. The purchase brought the company's total Bitcoin holdings close to 770,000 BTC. As proceeds raised through STRC continue to be converted into Bitcoin, the company's holdings are moving toward a new milestone.

Strategy, the world's largest corporate holder of Bitcoin, launched perpetual preferred stock STRC in July 2025 to raise U.S. dollar funding through share issuance and buy more Bitcoin. STRC targets a price near its $100 par value, with its high dividend designed to attract income-focused investors while allowing the company to continue expanding its crypto holdings.

Strategy said STRC's annualized dividend rate would remain at 11.5% in April 2026, ending a run of seven consecutive increases since the product's launch. With STRC's market price gradually stabilizing and approaching its $100 par value, the company will not raise the rate this month but will continue using the stock as a fundraising vehicle for future Bitcoin purchases.