Strategy (formerly MicroStrategy) introduced its Digital Credit Capital Framework on June 29, then quickly put it to work. Over the following week, the company sold 3,588 BTC worth roughly $216 million, boosted cash reserves to about $3 billion, and suspended further Bitcoin buying. The moves are meant to shore up financial flexibility, but analysts at CryptoQuant say the plan leaves key questions unanswered.
The Digital Credit Capital Framework
The framework, approved by the board, established a U.S. dollar reserve policy initially targeting $2.55 billion — later raised to roughly $3 billion. It also bumped the STRC dividend rate to 12% and authorized up to $1 billion each for preferred securities issuance and MSTR share repurchases. Separately, Strategy launched a Bitcoin Monetization Program that lets it sell up to $1.25 billion in BTC to support reserves and funding needs.
Between June 29 and July 5, the company sold 3,588 BTC. It also raised $466.7 million through its MSTR at-the-market share offering. Those combined moves helped push cash reserves from roughly $1.44 billion to about $3 billion, extending estimated dividend coverage from roughly 14 months to 29 months.
Bitcoin buying on ice
Strategy still holds approximately 843,775 BTC, but it paused further accumulation during the period. That’s a notable shift for a company that built its identity around relentless Bitcoin buying. CryptoQuant flagged the ambiguity: the framework doesn't explain when purchases could resume. The Bitcoin Monetization Program prioritizes dividends, reserves, and share repurchases, but doesn't lay out a clear trading strategy for the Bitcoin holdings.
The timing matters. Just days earlier, on June 23, CryptoQuant had warned that Strategy's cash reserves were shrinking — that it had enough liquidity for only about 14 months of preferred dividend obligations without new funding. The new framework appears to directly address that concern, at least for now.
STRC still below par
STRC, the preferred stock tied to the strategy, recovered from a June low near $75 to around $88. That’s still trading below its stated value of $100. The dividend hike didn't erase the gap, and investors are watching to see whether the cash buffer will eventually support a return to par.
The next concrete question: when, if ever, does Strategy start buying Bitcoin again? The framework doesn't say. For a company that once turned every dip into a buying opportunity, that silence is loud.
