MicroStrategy Approves $1.25B Bitcoin Sale Program to Boost $2.25B Reserve
MSTR•MicroStrategy’s board approved a Digital Credit Capital Framework allowing sales of up to $1.25 billion in Bitcoin to strengthen liquidity and manage capital. The company has rebuilt its USD Reserve to $2.25 billion, covering approximately 18 months of preferred dividend and interest obligations.
1. Framework Overview
The Board approved a Digital Credit Capital Framework allowing the company to sell up to $1.25 billion of Bitcoin under disciplined conditions tied to liquidity needs and credit quality. This framework formalizes when and how the firm can monetize BTC holdings, balancing treasury reserve status with capital management objectives.
2. Reserve Coverage
Under the new framework, the USD Reserve has been rebuilt to $2.25 billion and is required to cover at least 12 months of preferred dividend and interest payments. At current run-rates, this level of reserves supports roughly 18 months of obligations before additional funding is needed.
3. Liquidity and Capital Uses
Proceeds from authorized Bitcoin sales can be deployed to fund Stretch (STRC) payouts, repurchase preferred or common stock, or bolster cash reserves when equity issuance is less advantageous. The framework is designed to maintain long-term Bitcoin exposure while ensuring disciplined, active capital management.
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