Strategy’s Capital Overhaul: Buybacks, Bitcoin Sales, and a $2.55 Billion Safety Net
30.06.2026 - 16:54:34 | boerse-global.de
The software company that once swore by a one-way street of buying Bitcoin with every spare dollar has just pulled a U-turn. Strategy (formerly MicroStrategy) unveiled a sweeping new capital allocation framework on Monday that opens the door to selling its hoard of bitcoin for the first time, while simultaneously authorizing up to $1 billion in share buybacks. Investors initially cheered the move, but the enthusiasm evaporated within 24 hours — the stock tumbled nearly 8 percent on Tuesday.
At the heart of the new architecture is what management calls the “Digital Credit Capital Framework.” The centerpiece is a $2.55 billion US-dollar reserve, held as of June 28, 2026, that is designed to cover at least 12 months of fixed obligations. Those obligations — primarily interest payments and preferred-stock dividends — total roughly $1.76 billion per year, equating to about 17.4 months of coverage at current reserve levels. Management has pledged not to let the buffer drop below 12 months without explicit board approval.
To maintain that liquidity, Strategy has authorized a separate Bitcoin monetization program allowing it to sell up to $1.25 billion worth of its cryptocurrency holdings. The proceeds would flow into the dollar reserve or, if surplus to requirements, fund share repurchases. Chairman Michael Saylor was quick to stress that bitcoin remains the company’s primary reserve asset, but the very existence of a sales mechanism marks a historic departure from the “never sell” doctrine that defined Strategy for years.
Should investors sell immediately? Or is it worth buying Strategy?
The buyback authorization, approved on June 29, covers up to $1 billion in Class A common shares and another $1 billion in preferred stock. But the fine print is crucial: the company is not obligated to repurchase a single share. The program has no fixed expiry date and can be modified, suspended, or terminated at any time. Purchases may be made through open-market transactions, block trades, or privately negotiated deals, entirely at management’s discretion. Crucially, the $2.55 billion dollar reserve is ring-fenced and cannot be used for buybacks — any share repurchases that require selling bitcoin must be executed via the separate monetization program.
Alongside the buyback, Strategy is raising the annual dividend on its preferred shares to 12 percent, effective July 2026. The move is widely seen as an attempt to shore up confidence in the preferred stock market, where the company’s shares have traded at deep discounts to par.
The market’s reaction was anything but uniform. On Monday, Strategy’s common stock closed at €81.25 in Europe, up sharply on the day. By Tuesday’s close, however, the shares had plunged to €74.82 — a drop of nearly 8 percent and dangerously close to the 52-week low of €71.91. The stock has now lost roughly 44 percent of its value since January, and the relative strength index has slipped to around 30, a level that typically indicates oversold conditions. That is only a modest improvement from the RSI reading of 32.8 a day earlier, underscoring how quickly momentum turned bearish.
The broader picture is bleak: Strategy’s shares are trading about 79 percent below the 52-week high of €391.80 reached in July 2025. The new framework is management’s attempt to stabilize the balance sheet and signal a more disciplined approach to equity issuance — especially when the stock trades close to its simple market-adjusted net asset value. Whether actual buybacks materialize, and whether the market takes the Bitcoin sales authorization as a sign of weakness or pragmatism, will determine the next leg for this once-indomitable Bitcoin proxy.
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