Strategy Pauses Bitcoin Buys, Raises Preferred Dividend to 12% and Approves $1B Buyback
STRC•Strategy paused Bitcoin purchases from June 22–28, raised its Series A preferred dividend to 12% and authorized a $1 billion buyback of common shares and digital credit securities. It also boosted its USD reserve to $2.55 billion and secured a $260 price target plus a “robust” endorsement from analysts.
1. Digital Credit Capital Framework Overview
Strategy unveiled its Digital Credit Capital Framework, a comprehensive capital strategy designed to improve funding flexibility and shareholder returns through dividends, repurchases and reserve management.
2. Preferred Dividend Increase
Under the new framework, the dividend rate on Series A perpetual preferred stock (STRC) was raised to 12%, significantly enhancing yield for preferred shareholders.
3. Buyback Authorization and Reserve Growth
The company authorized up to $1 billion in repurchases of common stock and digital credit securities and increased its USD liquidity reserve to approximately $2.55 billion to underpin financial stability.
4. Bitcoin Purchase Pause and Monetization Program
Strategy disclosed it did not acquire any Bitcoin between June 22 and June 28 and approved a Bitcoin monetization program permitting sales for funding the USD reserve, paying preferred dividends and financing buybacks, subject to board approval.
