MSTR•MSTR•MicroStrategy unveiled a Digital Credit Capital Framework authorizing up to $1.25 billion in bitcoin sales, boosting its USD reserve to $2.55 billion, expanding liquidity coverage to 26 months. The company also approved $1 billion repurchase programs for both common shares and preferred securities and raised its preferred dividend rate to 12%.
MicroStrategy’s board approved a Digital Credit Capital Framework authorizing up to $1.25 billion in bitcoin sales for purposes including replenishing its USD reserve, funding preferred stock dividends and interest, and financing share repurchases. The program does not obligate any sales and will be executed based on market conditions and liquidity needs.
The framework expanded the firm’s USD reserve to $2.55 billion, covering roughly 17.4 months of expected preferred dividend and interest obligations. Including the authorized bitcoin monetization, total liquidity coverage rises to approximately 25.9 months, providing a buffer above the new 12-month policy floor.
The company launched two separate $1 billion repurchase programs: one for preferred securities and one for Class A common stock. Management intends to repurchase shares when trading prices present dislocations or when repurchases are more accretive than issuing new equity.
MicroStrategy increased the annual dividend rate on its variable-rate STRC preferred stock to 12% effective July 1, marking the eighth raise since inception. Dividends will be paid twice monthly and evaluated based on trading levels, market yields, bitcoin price volatility and reserve coverage.
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