Strategy (MSTR) on Monday announced a new Digital Credit Capital Framework and introduced a series of capital management initiatives aimed at strengthening its preferred securities, maintaining long-term Bitcoin exposure, and increasing balance sheet flexibility.
The company has already adopted a U.S. dollar reserve policy approved by its board of directors, increasing the annual dividend rate on its floating rate Series A Perpetual Stretch Preferred Stock (STRC) to 12%, effective for the dividend period beginning July 1. Strategy said its U.S. dollar reserves are currently about $2.55 billion, enough to cover about 17.4 months of preferred dividend and interest debt.
The board also authorized, but did not commit to, the repurchase of up to $1 billion of digital credit securities and the repurchase of up to $1 billion of Class A common stock. The Program has no set expiration date and may be modified, suspended, or terminated at any time. Actual stock repurchases will depend on market conditions and management’s assessment that they are accretive.
