MicroStrategy Stock Climbs 12.6% After $1.25B Bitcoin Monetization Plan
MSTR•MicroStrategy shares jumped 12.6% after unveiling a Digital Credit Capital Framework that authorizes up to $1.25 billion in Bitcoin monetization and boosts its USD Reserve to $2.55 billion. The company approved $2 billion in combined share repurchases and raised its STRC preferred dividend to 12% effective July 1.
1. Digital Credit Capital Framework
MicroStrategy unveiled a Digital Credit Capital Framework authorizing potential sale of up to $1.25 billion of Bitcoin to strengthen its capital structure and manage liquidity more proactively.
2. Reserve Coverage Expansion
The USD Reserve expanded to $2.55 billion, covering about 17.4 months of preferred dividend and interest obligations; including authorized Bitcoin sales would raise coverage to roughly 25.9 months.
3. Dividend Hike and Buybacks
Effective July 1, the STRC preferred dividend rate increases to 12%, and the company approved separate $1 billion repurchase programs for its preferred securities and Class A common stock.
