Strategy unveils capital framework with $2.55 billion reserves and $1.25 billion Bitcoin sale authorization
Strategy formalized a Digital Credit Capital Framework, raised the STRC dividend to 12%, and outlined reserve, limited Bitcoin monetization, and buyback policies to support preferred stock obligations and liquidity.
Strategy said on June 29 it formally introduced a Digital Credit Capital Framework to support preferred stock credit quality and liquidity, alongside about $2.555 billion in U.S. dollar reserves. The company also raised the STRC dividend to 12% and outlined a reserve plan described as about $3 billion, while Michael Saylor said Strategy has $2.55 billion in reserves, $1.25 billion in Bitcoin liquidity available for reserve building, and total dividend coverage of $3.8 billion, equal to 25.9 months. The board defined three compliant scenarios for Bitcoin sales: raising up to $1.25 billion in cash to supplement reserves, paying preferred dividends and interest when doing so is cheaper than new financing, and supporting a share repurchase program capped at $1 billion. Strategy also said earlier that it made no new Bitcoin purchases this week.
- Digital Credit Capital Framework: Strategy's capital plan for managing reserves, liabilities and shareholder payouts while supporting preferred stock credit quality and liquidity.
- preferred stock: Shares that generally have priority over common stock for dividend payments and certain claims.
- share repurchase program: A board-approved plan that allows a company to buy back its own shares, typically to return capital or support the stock price.