Strategy announced a $1 billion stock buyback program for its Class A common stock, sending shares up more than 7% in pre-market trading. The buyback is part of a broader capital management overhaul that also authorizes up to $1.25 billion in Bitcoin sales to support liquidity.
Strategy announced a $1 billion share buyback program, sending its stock up more than 7% in pre-market trading on Monday.
"The new framework establishes a Board-approved cash reserve policy, updates the dividend policy for its STRC preferred shares and authorizes up to $1 billion of repurchases for Class A common stock," the company said in a Securities and Exchange Commission filing.
The buyback is part of a broader capital strategy that also permits the company to sell Bitcoin to generate up to $1.25 billion for its U.S. dollar reserve, replenish cash used for dividend and interest payments or finance repurchases of preferred securities and common stock. Strategy said any Bitcoin sales outside those purposes would require additional board approval. The company also authorized up to $1 billion of repurchases for its Digital Credit Securities, bringing total authorized buybacks to $2 billion.
Strategy reported no Bitcoin purchases during the week ended June 28. It continues to hold 847,363 Bitcoin acquired for approximately $64 billion, representing an average purchase price of $75,651 per token. The company raised approximately $1.15 billion in net proceeds through sales of 12.67 million Class A shares under its at-the-market equity program during the reporting period, while no preferred securities were issued under its ATM programs.
The Bitcoin monetization program marks a shift in Strategy's approach to its digital asset holdings. Previously, the company had been a consistent net buyer of Bitcoin, using equity and debt offerings to accumulate the world's largest corporate Bitcoin treasury. The new framework gives management flexibility to sell tokens to meet cash needs without seeking additional board approval for each transaction.
The buyback program comes as other large-cap companies have also expanded shareholder returns. Accenture increased its fiscal 2026 buyback allocation by $2 billion to $7.5 billion, while JPMorgan Chase authorized a $50 billion share repurchase program after passing the Federal Reserve's stress tests.
The buyback program reflects management's confidence in Strategy's financial position as the company balances its role as the largest corporate Bitcoin holder with returning capital to equity holders. Investors will watch for the pace of repurchases and any further Bitcoin monetization in coming quarters.
This article is for informational purposes only and does not constitute investment advice.
