Strategy unveils Bitcoin framework with $2.55B cash reserve

Strategy adopted a new capital framework that allows it to monetize part of its Bitcoin holdings to fund dividends, build cash reserves and repurchase securities while maintaining its long-term Bitcoin strategy. In a Monday 8-K filing with the US Securities and Exchange Commission the company introduced the Digital Credit Capital Framework, which includes a Bitcoin monetization program and changes to its STRC preferred stock dividend policy.

The firm raised the STRC annual dividend rate to 12% from 11.5% and authorized separate buyback programs for preferred securities and its Class A MSTR common stock; it said it may sell Bitcoin to raise as much as $1.25 billion to increase its cash reserve, pay dividends and debt costs, and fund stock buybacks.

The filing arrived amid a volatile stretch that has seen MSTR shares slide almost 50% year-to-date while STRC fell as low as $71.25, a 28.75% discount to par per TradingView.

United States

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