Shares of Strategy Inc. climbed 14% at times on Monday to roughly $94, their best single-day gain in weeks, after the bitcoin treasury company unveiled a sweeping capital overhaul.
The move marks a significant shift for the company once synonymous with an unrelenting bitcoin accumulation strategy. Strategy’s board approved a new Digital Credit Capital Framework that authorizes up to $1.25 billion in bitcoin sales to fund a newly created U.S. dollar reserve, cover preferred dividend obligations, and service debt.
The company also authorized $1 billion in common stock buybacks and $1 billion in repurchases of its preferred securities.
The company raised the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, to 12% annually — a 50 basis point increase effective July 1.
Strategy held 847,363 BTC as of June 28, purchased for an aggregate $64.10 billion at an average price of $75,651 per coin. With bitcoin trading near $60,000 Monday afternoon, the company sits on an unrealized loss on its entire stack — context that makes the new monetization framework more than just financial engineering.
The company said it has approximately $2.55 billion in U.S. dollar reserves, covering roughly 17 months of annual preferred dividend and interest obligations of about $1.76 billion.
The stock had been grinding lower since hitting a high near $200 earlier this year in May, pulled down by bitcoin weakness and broader risk-off pressure. Monday’s bounce, driven largely by the capital plan announcement, brought shares back above $92 intraday, with a session peak near $94.
Other crypto and bitcoin-linked stocks also started the week out strong.
Nakamoto (NAKA) shares surged more than 10% at points during Monday’s session, among the day’s strongest movers in the crypto equity space. Strive (ASST) climbed over 3.5% at its intraday peak. Coinbase (COIN), by contrast, saw a more muted session — shares up around 2% at their high.
Strategy and bitcoin price action
Bitcoin price shed roughly 6% over the past week, pulling back from a high near $64,400 earlier in the period to trade around lows of $58,800 today — a grind lower that has tracked weakness across broader risk assets.
Bitcoin price has now dropped more than 18% on the month, with the June candle opening near $76,690 and finding no sustained bid on the way down.
Six straight weeks of ETF outflows, totaling tens of millions in institutional selling, have weighed on the price throughout the stretch. Bitcoin remains below its key 50-month exponential moving average near $65,600, a level that technicians watch as a line between short-term recovery and deeper correction territory.
Bitcoin Magazine is published by BTC Inc, a subsidiary of Nakamoto Inc. (NASDAQ: NAKA)