Strategy shares rebounded on Monday after one of their sharpest weekly losses, supported by a new capital plan and a stabilization in Bitcoin near $60,000.
MSTR shares rose to about $89 during the session from a previous close of $82.31, recovering some ground after a five-day drop that erased more than 30% from a June 22 peak near $120. The company’s preferred stock, STRC, also advanced above $82 after closing at $73.80 on Friday, rebounding from a steep decline that had pushed it well below its $100 par value.
New capital plan targets stability and liquidity
The company introduced what it calls a Digital Credit Capital Framework aimed at strengthening its balance sheet and improving liquidity. Strategy paused additional Bitcoin purchases despite raising $1.15 billion through share sales, instead boosting its U.S. dollar reserves to $2.55 billion.
The framework authorizes up to $1 billion in repurchases of digital credit instruments, including STRC, STRF, STRD, and STRK, with priority given to STRC. A separate $1 billion buyback program was approved for MSTR common shares.
Strategy also increased the monthly dividend on STRC by 50 basis points to 12% for July. The rate will be reviewed monthly depending on trading conditions, Bitcoin prices, and available cash. The company maintains a long-term objective of returning STRC closer to its $100 par value.
Shift toward flexible balance sheet management
The plan marks a shift in how the firm manages its digital asset holdings, treating them as a more flexible financial resource rather than a static reserve. The $2.55 billion cash position is estimated to cover roughly 17 months of annual dividend and interest obligations, which total about $1.76 billion.
A key component of the strategy is a newly authorized Bitcoin monetization program, allowing the sale of up to $1.25 billion in Bitcoin. These proceeds may be used to replenish cash reserves or fund buybacks when management sees better value compared with issuing new shares.
Pressure from recent market downturn
The move follows heightened pressure on Strategy’s capital structure after sharp declines in both its securities and Bitcoin. The cryptocurrency fell below $60,000 on June 24, its lowest level since late 2024, raising concerns among traders about the sustainability of the company’s previous capital strategy.
The newly approved buybacks are designed to directly support the pricing of its securities, particularly as STRC traded at a discount exceeding 25% to its intended value at recent lows. The higher dividend is also aimed at improving demand for the preferred shares.
Cautious approach to equity issuance
Executive Chairman Michael Saylor signaled a more cautious stance on issuing new MSTR shares while the stock trades near one times enterprise modified net asset value, or mNAV, a measure comparing total enterprise value to Bitcoin holdings.
During the recent selloff, the company’s mNAV fell below parity for the first time, indicating the collapse of the premium its shares once held over its Bitcoin assets. The shift suggests future asset accumulation will be more closely tied to stock valuation, potentially reducing a key source of demand that previously supported the company’s growth strategy.
Amid Strategy’s bitcoin-linked rebound, explore crypto’s broader trajectory in our outlook: crypto performance forecast and positioning insights.
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