Strategy's preferred stack and Bitcoin's price are facing two separate tests this week, and only one of them has been resolved.

The company's Digital Credit Capital Framework centers on a $2.55 billion dollar-denominated reserve, a revised STRC dividend policy, $2 billion in combined buybacks, and a board-authorized BTC monetization program.

MSTR rose roughly 6% in pre-market trading, and STRC climbed to about $81, still well off its $100 par value. The framework provides Strategy with a defined path to meet its dividend obligations without forced dilution or panic selling.Bitcoin broke below $60,000 again, with over 550,000 BTC moved toward Binance- and OKX-linked deposit addresses in the days leading up to the break, the largest such transfer since the 2023 bear market.Spot ETFs shed roughly 71,600 BTC over the prior month, a demand gap that a corporate buyback program has no mechanism to close.Strategy's $2.55 billion-denominated reserve covers about 17.4 months of the company's roughly $1.76 billion in annual preferred dividend and interest obligations, with a board policy requiring at least 12 months' coverage.
The company raised STRC's dividend rate to 12% from 11.5%, effective for record dates after July 1, and set a monthly review process tied to trading levels, credit spreads, Bitcoin price and volatility, and reserve coverage.
Lacie Zhang, a research analyst at Bitget Wallet, said analysts had flagged that Strategy's cash reserves had shrunk to cover just 14 months of preferred dividend costs, with roughly $904 million in annual obligations against only about $150 million in software operating cash flow.The program authorizes up to $1.25 billion in BTC sales for three purposes: rebuilding the dollar reserve, funding preferred dividends and interest when management decides selling Bitcoin beats issuing new equity, and financing the buyback programs.
Strategy holds 847,363 BTC at an aggregate purchase price of $64.1 billion, against a current Bitcoin price of around $60,000, roughly $16,000 below that average cost.
Zhang called this a shift from the company's long-held accumulate-and-never-sell posture. MSTR's pre-market gain reflected relief that the funding gap finally has an answer, even one that includes selling Bitcoin at a loss if conditions force it.