Woofun AI reports that Strategy has formally introduced a "Digital Credit Capital Framework" comprising five distinct operational pillars designed to address a floating loss of approximately $13.258 billion on its Bitcoin holdings. As of June 28, the company maintained a total inventory of 847,363 BTC with an aggregate cost basis of roughly $64.1 billion, translating to an average acquisition price of $75,651 per coin.

Concurrently, the firm executed sales of 12.669 million shares of MSTR common stock via its ATM program, generating approximately $1.1524 billion in proceeds to bolster liquidity before implementing these new strategic measures.

The first pillar establishes a strict Dollar Reserve Policy, which saw the company's cash reserves swell to approximately $2.55 billion as of June 28, 2026. These funds are legally ring-fenced exclusively for servicing preferred stock dividends and debt interest obligations, with any deviation requiring explicit board authorization. The policy mandates a minimum reserve level capable of covering 12 months of anticipated preferred stock dividends and interest expenses for the current fiscal year, ensuring immediate solvency regardless of market volatility. This structural constraint prevents the commingling of operational liquidity with speculative capital deployment.

Notably, the second component involves a revision to the STRC dividend policy, raising the annual yield by 50 basis points to a new rate of 12.00%, effective from the record date in July 2026. The strategic objective is to anchor the long-term trading range of STRC between approximately $99 and $100, stabilizing the instrument's market perception. Future interest rate adjustments will be evaluated on a monthly cadence, factoring in trading volume, prevailing market yields, credit spreads, BTC price fluctuations, and reserve coverage ratios to maintain competitive positioning without compromising capital efficiency.

A more critical variable is the establishment of dual buyback programs, each capped at a maximum authorization of $1 billion. The first targets digital credit securities, specifically covering preferred stock series STRC, STRF, STRD, and STRK, while the second focuses on MSTR Class A common stock. These repurchases may be executed through public markets, block trades, or private negotiations without a fixed expiration date, offering flexibility in timing. Crucially, funding for these buybacks is explicitly excluded from the dollar reserves; if financed through the sale of BTC, such transactions fall under the separate Bitcoin liquidation plan rather than the reserve account.

Woofun AI data shows the board has authorized a specific Bitcoin liquidation plan permitting the sale of BTC assets for three defined purposes: generating up to $1.25 billion to reinforce dollar reserves, funding due preferred stock dividends and interest payments, or financing the aforementioned securities buyback programs. Any liquidation activity exceeding this authorized scope necessitates additional board approval, creating a rigid governance layer over asset disposal. This mechanism allows the company to convert unrealized losses into working capital while maintaining a controlled exposure to the underlying asset.

Structurally, the combination of $2.55 billion in existing dollar reserves and the potential $1.25 billion from authorized BTC liquidations yields a total dividend coverage capacity of approximately $3.8 billion. This liquidity buffer equates to roughly 25.9 months of dividend coverage, significantly enhancing the company's credit profile and reducing immediate refinancing risks. The firm has committed to maintaining strict issuance discipline whenever the trading price of MSTR approaches or equals 1 times its mNAV, preventing further dilution during periods of depressed valuation.

Previously, Strategy accumulated its Bitcoin position through continuous issuance of convertible bonds, ATM equity, and "digital credit" preferred stocks, effectively employing a leveraged accumulation strategy that resulted in an average cost of $75,651 per BTC. With BTC prices fluctuating around $60,000 at the time of reporting, this disparity created the substantial floating loss of $13.258 billion. The recent significant decline in MSTR share prices, coupled with an mNAV index trading below 1 times and discounted STRC valuations, has diminished the attractiveness of new capital issuance.

This strategic adjustment aims to enhance overall credit quality, reduce expected dividend payment burdens, and simultaneously preserve a long-term strategic position in Bitcoin. By shifting from aggressive leverage to a defensive capital structure, the company seeks to navigate the current market dislocation without liquidating its entire core asset base. This marks a definitive pivot from growth-at-all-costs accumulation to a balanced approach prioritizing solvency and shareholder value preservation.