Strategy launched its Digital Credit Capital Framework, authorizing up to $1 billion in common and preferred buybacks and allowing Bitcoin sales to fund 12% preferred dividends. The firm holds $2.55 billion in USD reserves, covering 17.4 months of preferred obligations and 25.9 months including $1.25 billion in BTC-sale capacity.
Strategy introduced the Digital Credit Capital Framework to enhance liquidity management, featuring a Bitcoin monetization program, a $1 billion authorization for common share repurchases and a $1 billion plan to repurchase preferred securities.
The framework allows Strategy to sell Bitcoin to cover preferred dividends, replenish cash reserves or fund buybacks, marking a shift from its previous one-way accumulation approach while maintaining Bitcoin as its primary treasury reserve asset.
Strategy reported $2.55 billion in USD reserves, sufficient to cover 17.4 months of preferred dividend and interest obligations. Including $1.25 billion in authorized BTC-sale capacity, total coverage extends to 25.9 months, with a minimum 12-month reserve policy requiring board approval for any drawdown below that level.
Effective for record dates on or after July 1, the dividend rate on the Variable Rate Series A Perpetual Stretch Preferred Stock was raised from 11.5% to 12% annually. The $1 billion preferred repurchase plan complements the dividend rise, reinforcing capital discipline under the new framework.
