- Strategy adopted a new Digital Credit Capital Framework, including a board approved USD reserve policy and a higher 12% dividend for its STRC preferred shares.
- The board authorized up to $1 billion of preferred security buybacks and $1 billion of common stock repurchases, though neither program obligates the company to make purchases.
- Strategy also approved a bitcoin monetization program, allowing future BTC sales to build reserves, fund dividends and interest payments
Strategy (MSTR) unveiled a new Digital Credit Capital Framework on Monday, introducing a series of capital management initiatives designed to strengthen its preferred securities, preserve long term bitcoin exposure, and improve balance sheet flexibility.
The company has already adopted a board approved U.S. dollar reserve policy and increased the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12%, effective for dividend periods beginning July 1. Strategy said its U.S. dollar reserve currently stands at approximately $2.55 billion, enough to cover about 17.4 months of preferred dividend and interest obligations.
The board also authorized, but did not commit to, up to $1 billion in repurchases of its Digital Credit Securities and up to $1 billion in buybacks of its Class A common stock. The programs have no fixed expiration date and may be modified, suspended, or terminated at any time. Actual repurchases will depend on market conditions and management's assessment that they are accretive.
