Strategy (MSTR) unveiled a new digital credit capital framework on Monday, introducing a series of capital management initiatives designed to strengthen its preferred securities, preserve long-term exposure to bitcoin and improve balance sheet flexibility.
The Company has already adopted a board-approved U.S. dollar reserve policy and increased the annual dividend rate of its Series A Floating Rate Perpetual Expandable Preferred Stock (STRC) to 12%, effective July 1 for dividend periods. Strategy said its U.S. dollar reserve currently stands at about $2.55 billion, enough to cover about 17.4 months of preferred dividends and interest.
The board also authorized, without committing, up to $1 billion in repurchases of its digital credit securities and up to $1 billion in repurchases of its Class A common stock. The programs have no fixed expiration date and may be modified, suspended or terminated at any time. Actual repurchases will depend on market conditions and management’s assessment that they are accretive.
