Strategy, the company formerly known as MicroStrategy, has officially broken its own cardinal rule. The company can now sell Bitcoin to buy back stock, repurchase debt, and pay preferred dividends.

Strategy already sold 32 BTC for approximately $2.5 million at the end of May 2026, marking the first Bitcoin sale in the company’s treasury history. The company still holds roughly 843,738 BTC.

The new framework, explained

On June 29, 2026, Strategy formally introduced what it calls the Digital Credit Capital Framework, a set of rules that lets the company treat Bitcoin as a flexible treasury asset.

The framework authorizes up to $2 billion in stock repurchases. It also includes a Bitcoin monetization program allowing for up to $1.25 billion in sales to shore up the company’s USD reserves and overall liquidity.

Back on May 15, 2026, Strategy announced plans to repurchase $1.5 billion of its 0% convertible senior notes due 2029 at a discount. The proposed funding sources for that buyback included cash reserves and Bitcoin sales.

CEO Phong Le stated the firm would sell Bitcoin “when advantageous,” marking a shift from passive accumulation to active balance-sheet management. The same framework update also raised the dividend on STRC preferred shares to 12%.

What this means for investors

For Strategy shareholders, stock buybacks funded by Bitcoin sales could boost per-share value in the near term. The $2 billion buyback authorization suggests management sees its own equity as undervalued. The 12% dividend on STRC preferred shares also gives income-oriented investors a concrete reason to stick around.

The risk is that this new framework erodes the very premium that made Strategy stock attractive in the first place. Many investors bought shares precisely because they believed the company would hold Bitcoin indefinitely, acting as leveraged long exposure to the asset. If that conviction trade unwinds, the stock could lose its appeal as a Bitcoin proxy, forcing it to be valued more on its software fundamentals.