Strategy Unveils $1.25B Bitcoin Sale, $2B Buybacks and Raises Dividend to 12%
MSTR•Strategy unveiled a Digital Credit Capital Framework authorizing up to $1.25 billion of Bitcoin sales to fund $1 billion common and $1 billion preferred stock buybacks and bolster its $2.55 billion cash reserves. The board raised the Series A perpetual preferred dividend rate to 12% to strengthen liquidity coverage.
1. Digital Credit Capital Framework Launch
Strategy introduced its Digital Credit Capital Framework, marking a strategic shift from one-way Bitcoin acquisition to active capital management. The framework grants the board authority to monetize Bitcoin holdings, repurchase securities and optimize liquidity across funding needs.
2. Bitcoin Monetization Program
Under the new framework, Strategy may sell up to $1.25 billion of Bitcoin to replenish cash reserves, fund preferred dividends and finance share buybacks when market conditions are favorable.
3. Share and Preferred Repurchase Programs
The company authorized $1 billion for Class A common stock buybacks and $1 billion for preferred securities repurchases, with no expiration date, to support equity valuations and enhance shareholder returns.
4. Liquidity Coverage and Dividend Policy
Strategy holds $2.55 billion in U.S. dollar reserves, covering roughly 17.4 months of preferred dividend and interest obligations, and raised its Series A perpetual preferred dividend rate from 11.5% to 12% to reinforce credit quality.
