Strategy's stock and preferred surge after its new capital framework

Wall Street Responds to Strategy's Capital Overhaul

@Strategy's common stock $MSTR jumped roughly 13% to $92.87 on June 29, while its $STRC preferred shares surged by the same margin to $84.59, after the company announced a sweeping new Digital Credit Capital Framework. The framework is designed to strengthen Strategy's various series of preferred securities, enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation for shareholders.

The package includes five key elements: a USD Reserve policy approved by the board, updates to the STRC dividend approach, a repurchase initiative for Digital Credit Securities, a buyback program for Class A common stock, and a strategy for monetizing Bitcoin. The company set a board-approved USD Reserve policy, with a reserve balance of $2.55 billion as of June 28, 2026, dedicated to preferred dividends and interest.

"Strategy remains committed to Bitcoin as its primary treasury reserve asset," said Michael Saylor, Founder and Executive Chairman. "At the same time, Digital Credit requires liquidity, discipline, and active capital management. This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive."

$STRC: The Standout Mover

$STRC was the clear focus of the announcement. Strategy increased the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock to 12% annually, with the higher rate applying to semi-monthly periods with record dates on or after July 1, 2026. Management indicated it will review the rate monthly, with the objective of supporting trading near the $100 stated amount.

The firm also authorized repurchase programs of up to $1.0 billion for Digital Credit Securities and up to $1.0 billion for Class A common stock. The board additionally authorized a BTC Monetization Program to sell bitcoin to fund a $1.25 billion USD Reserve target, dividends and interest, or repurchases.

The moves are widely read as a direct response to a prolonged slide in $STRC. The preferred stock had hit record lows near $73 to $78, down roughly 25% from its $100 par value. Because STRC traded below its $100 par value, Strategy had paused issuing new shares through its at-the-market program, limiting its ability to keep adding to its bitcoin holdings. The combination of a higher dividend and a dedicated buyback is now pulling the stock back toward par, with traders treating the package as a credible fix for the discount.

Notably, the market largely shrugged off Strategy's separate authorization to sell up to $1.25 billion in bitcoin as part of the new monetization program, viewing the broader capital discipline measures as the more significant signal.

Sources:
Strategy official press release via Business Wire
CoinDesk: How STRC lost its par
GuruFocus: Strategy implements Digital Credit Capital Framework