MicroStrategy permits conditional Bitcoin sales and buybacks

MicroStrategy on Friday announced a Digital Credit Capital Framework that permits conditional Bitcoin sales up to $1.25 billion, establishes a $2.55 billion U.S. dollar reserve policy and authorizes up to $2 billion in buybacks. The company raised the dividend on its Stretch security (STRC) by 50 basis points to 12%, effective for July.

The framework allows up to $1 billion in preferred “Digital Credit” buybacks and up to $1 billion in MicroStrategy common stock buybacks. It creates a BTC Monetization Program that would permit conditional sales of up to $1.25 billion to fund reserves, dividends and repurchases. MicroStrategy described the reserve policy as part of the measures to resolve recent dividend-payment questions for STRC.

The announcement follows scrutiny of the company’s capital moves in recent months, including a May repurchase of $1.5 billion of 0% convertible senior notes due 2029. That repurchase drew investor attention and questions about the company’s funding and dividend approach.

Market participants responded with mixed views. Some investors welcomed the clarification on STRC’s dividend and the formal reserve target. Others criticized the authorization of buybacks and the explicit option to sell Bitcoin, saying that spelled-out sale conditions could change how traders price MicroStrategy securities. A JPMorgan analyst warned that turning a large corporate buyer into a potential seller introduces a two-way flow risk. Several users on social platforms suggested Bitcoin sales may already be occurring.

Bitcoin was trading near $61,438 when MicroStrategy released the framework. On-chain data cited by market participants showed what they described as the largest single on-chain accumulation of Bitcoin ever recorded in recent days. STRC had been trading below its $99–$100 par value prior to the dividend increase.

Investor Jeremy Grantham criticized crypto in public remarks, asking, “What does crypto do? What’s the use of crypto… There’s no there there,” and calling proof-of-work “proof of unnecessary work.”

MicroStrategy has long held a large corporate Bitcoin position. The new framework documents specific conditions under which the company could monetize part of that position, authorizes buybacks, and sets a dollar reserve target to support dividend payments and other shareholder actions.