Strategy has unveiled a new capital management framework that authorizes up to $2 billion in share buybacks and introduces a structure that could allow future bitcoin sales to support liquidity if required.

The company (MSTR) announced the “Digital Credit Capital Framework” on Monday, a set of measures aimed at strengthening its preferred securities, maintaining long-term bitcoin exposure, and improving overall balance sheet flexibility.

As part of the initiative, Strategy has already adopted a board-approved U.S. dollar reserve policy and raised the annual dividend on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12%, effective for dividend periods starting July 1. The company said its USD reserve stands at roughly $2.55 billion, sufficient to cover about 17.4 months of dividend and interest obligations.

The board also authorized, on a non-binding basis, up to $1 billion in repurchases of Digital Credit Securities and up to $1 billion in buybacks of Class A common shares. Both programs carry no fixed timeline and may be adjusted, paused, or terminated depending on market conditions and management discretion.

In addition, Strategy approved a Bitcoin Monetization Program, allowing the firm to sell BTC when management deems it advantageous. Proceeds can be used to rebuild USD reserves, meet dividend and interest obligations, or fund share repurchases, though the company emphasized that bitcoin sales are not mandatory.

Executive Chairman Michael Saylor said the framework is intended to strengthen Strategy’s credit profile while preserving bitcoin as its core treasury reserve asset. CEO Phong Le added that it reflects a shift toward more active capital management, balancing issuance and buybacks in response to market conditions.

Following the announcement, MSTR shares rose about 6% in pre-market trading, STRC gained roughly 9%, and bitcoin edged higher to around $60,500.