Strategy’s stock had been on a nine-day losing streak — down nearly 42% from its peak about a month ago. Monday changed that. Shares popped 12.6% to $92.68 after the Bitcoin treasury company unveiled a new capital management framework.
Instead of the usual Monday Bitcoin purchase announcement, Strategy focused on its expanded USD Reserve of $2.55 billion and a “BTC Monetization Program.” The company signaled it could generate $1.25 billion by selling Bitcoin, giving it cash to manage dividends and debt. Analysts had been warning that Strategy’s cash reserves were running dangerously thin.
Here’s what’s interesting: Strategy also said it would occasionally buy back common and preferred shares during “market dislocations.” It won’t issue common shares unless the company trades at a premium to its enterprise value. That’s a shareholder-friendly signal in a company that’s historically been all-in on Bitcoin accumulation.
Executive Chairman Michael Saylor also raised the dividend on Stretch (STRC) for the eighth time, putting it on track for 12% annually with distributions twice a month. STRC itself rose 12.2% to $83.67, recovering from a record low of $71.25 last week — well below its $100 par value.
Strategy’s Bitcoin holdings remain unchanged at 847,363 BTC, valued at $51 billion with roughly $13.1 billion in unrealized losses. Bitcoin traded around $60,200 on Monday, up 1.1% on the day.
Analysts at Benchmark-StoneX called the framework “robust” and reiterated a $570 price target. Whether that holds depends on one thing: Bitcoin’s price.
