The monetization program also permits Strategies to sell Bitcoin to fund up to $1 billion of digital credit securities repurchases and up to $1 billion of Class A common stock repurchases. Monetizing Bitcoin beyond these permitted purposes will require additional board approval. Repurchase programs have no expiration date.
The monetization program is part of a broader capital allocation strategy that includes increasing the dividend on Strategy’s STRC preferred stock from 11.5% to 12%, adopting a formal US dollar reserve policy, and requiring cash reserves sufficient to cover at least 12 months of preferred stock dividends and interest debt.
“At the same time, digital credit requires liquidity, discipline, and active capital management,” said Michael Saylor, Founder and Chairman of Strategy. “This framework is designed to strengthen credit quality and reduce expected preferred stock dividend payments if we increase. This framework also sets out how we plan to use our capital management toolkit while maintaining our commitment to long-term Bitcoin exposure.”
MSTR stock rose 3% following the announcement, but Bitcoin is trading below $60,000.
