Benchmark Backs Strategy’s Digital Credit Framework, Keeps $570 Target
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.
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The history behind this eventStrategy Launches Digital Credit Framework, Starts $1.25 Billion Bitcoin Plan
Strategy, the world’s largest corporate holder of bitcoin, built its treasury by selling debt, common stock and preferred securities to fund BTC purchases. The model, closely associated with Executive Chairman Michael Saylor’s long-standing buy-and-hold stance, came under pressure as bitcoin weakened and the company’s dividend and interest obligations grew. The Digital Credit Capital Framework matters because it formalizes bitcoin sales as a liquidity tool while seeking to protect the company’s core BTC exposure and support its preferred securities.
Strategy unveiled the framework on June 29, 2026, lifting the annualized dividend rate on its STRC preferred stock to 12% for periods with record dates from July 1 and moving payments to a semi-monthly schedule. The board also authorized up to $1.25 billion of BTC monetization. Between June 29 and July 5, Strategy sold 3,588 bitcoin for net proceeds of $216 million to fund preferred distributions and replenish its dollar reserve. As of July 5, it held 843,775 BTC and maintained a $2.55 billion reserve. Bitcoin fell more than 4% to near $61,000 after the disclosure before recovering toward $62,000.
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