MicroStrategy Unveils $1.25B Bitcoin Sale Framework, $1B Buybacks, 12% Dividend Hike
MSTR•MicroStrategy shares jumped nearly 12% after unveiling a Digital Credit Capital Framework authorizing potential sale of up to $1.25 billion in Bitcoin to bolster a $2.55 billion reserve, fund dividends and finance stock repurchases. The company also approved $1 billion repurchase programs and raised STRC preferred dividends to 12%.
1. Digital Credit Capital Framework
MicroStrategy introduced a new capital management framework that authorizes potential sales of up to $1.25 billion in Bitcoin. The program remains optional and is designed to strengthen preferred securities, improve liquidity and maintain Bitcoin as its primary treasury reserve asset.
2. Liquidity and Reserve Enhancement
As of June 28, the company holds a $2.55 billion U.S. dollar reserve, covering roughly 17.4 months of preferred dividend and interest obligations. Including the $1.25 billion Bitcoin monetization capacity, total liquidity coverage would extend to approximately 25.9 months.
3. Share Repurchases and Dividend Hike
MicroStrategy approved separate $1 billion repurchase programs for preferred securities and Class A common stock. The board also increased the annual dividend rate on its STRC preferred shares to 12% beginning July 1 to enhance shareholder returns.
