Strategy recently announced its BTC Monetization Program, a framework that authorizes the company to sell bitcoin to fund the preferred dividend bill and finance preferred buybacks. Our STRC report traced how the obligation behaves under pressure. While bitcoin appreciates, common equity carries the preferred dividends. Once mNAV falls below 1x, that channel stops working. Strategy is there now. The cost moves down the structure. Common holders absorbed it first, through the dilution that funded the preferred dividends. The reserve and bitcoin sales come next. Strategy already tested that in late May, selling 32 coins to cover STRC distributions. The new framework makes it routine. Facing this, Strategy had three options available: repurchase STRC, sell bitcoin, or suspend the dividend. It reached for two, authorizing buybacks and bitcoin sales, and rejected the last by raising the dividend rather than cutting it. Strategy holds roughly 17 months of coverage in cash, so abandoning STRC would not require selling bitcoin today. The decision to authorize sales signals the opposite, that the 12% dividend remains funded and the channel stays open. To keep the credit stack credible, Strategy will spend the asset the stack was built to accumulate. The bet was always about surviving long enough to be right.(Delphi Digital)