The monetization program also authorizes Strategy to sell Bitcoin to fund up to $1 billion in digital credit security repurchases and up to $1 billion in Class A common stock repurchases. Any monetization of Bitcoin beyond these authorized purposes would require additional board approval. Buyback programs do not have an expiration date.
The monetization program is part of a broader capital allocation strategy that also includes increasing Strategy’s STRC preferred stock dividend to 12%, from 11.5%, adopting a formal USD reserve policy, and requiring cash reserves sufficient to cover at least 12 months of preferred stock and interest bond dividends.
Michael Saylor, founder and executive chairman of Strategy, said: “At the same time, digital credit requires liquidity, discipline and active capital management. This framework is designed to strengthen credit quality and allow the Company to reduce expected dividend payments on preferred shares when they are accretive. This framework also defines how we plan to use our capital management toolkit while maintaining our commitment to long-term exposure to Bitcoin.”
MSTR shares rose 3% after the announcement, while bitcoin is trading below $60,000.
