Strategy Trust Unveils $1.25B Bitcoin Monetization Program, Raises Dividend to 12%
STRC•Strategy Trust shares rose 12.2% after unveiling a new Digital Credit Capital Framework that expanded its USD Reserve to $2.55 billion and allows up to $1.25 billion in Bitcoin liquidations to bolster dividends and debt coverage. The trust’s dividend was raised for the eighth time, delivering a 12% annualized yield.
1. New Capital Framework Details
Strategy Trust expanded its USD Reserve to $2.55 billion and introduced its Digital Credit Capital Framework, enabling up to $1.25 billion in systematic Bitcoin liquidations for cash generation. The framework also allows occasional repurchases of common and preferred shares to capitalize on market dislocations and restricts share issuance to periods when valuations exceed enterprise value.
2. Dividend Hike and Debt Support
The trust raised its dividend for the eighth time to a 12% annualized yield, payable twice monthly, aiming to reinforce investor returns and bolster debt coverage. Proceeds from the Monetization Program are earmarked for sustaining dividend payouts and managing outstanding liabilities.
3. Stock Reaction and Analyst Outlook
STRC shares jumped 12.2% on the announcement, recovering from a trough near $71.25 and narrowing monthly losses. A senior research analyst reiterated a Buy rating with a $570 price target, calling the new capital framework a robust answer to long-standing investor concerns.
