Strategy, the world’s largest publicly traded Bitcoin holder, has again paused weekly purchases and did not purchase any Bitcoin last week.
Therefore, the company’s $BTC Balance held remains at 847,363 $BTCMeanwhile, company founder Michael Saylor made a new announcement regarding Bitcoin and US dollar reserves.
In a statement from Account X, the company announced it had increased its dollar reserves to $2.55 billion, Saylor said. These dollar reserves can only be used to pay dividends and interest, Saylor said.
“Strategy has increased its USD reserves to $2.55 billion, which equates to 17.4 months of dividend protection. USD reserves can only be used for dividend and interest payments and will be held for a minimum of 12 months.”
Saylor also announced the Digital Credit Capital Framework, which aims to strengthen digital credit, increase liquidity, protect long-term Bitcoin exposure, and support long-term value creation.
The framework includes a Bitcoin monetization program that allows Bitcoin investors to sell Bitcoin assets to replenish dollar reserves, pay dividends and interest, and use the proceeds to buy back digital credit securities and MSTR.
Currently, the limit on how much Bitcoin can be exchanged for cash to replenish dollar reserves is set at $1.25 billion.
“The strategy is $BTC A monetization program that allows you to sell Bitcoin to fund the following elements:
– US dollar reserves
– Dividends and interest paid
– Repurchase of digital credit securities and MSTR under the repurchase programCombining $2.55 billion in dollar reserves and $1.25 billion in Bitcoin liquidity, the strategy’s total dividend paying capacity is $3.8 billion (equivalent to 25.9 months).
The company also authorized up to $1 billion for the repurchase of digital credit securities and up to $1 billion for the repurchase of MSTR. STRC’s annual dividend rate has also been increased from 11% to 12%.
Thaler also added that Strategy has established repurchase programs of up to US$1 billion for digital credit securities and up to US$1 billion for MSTR.
“…This provides us with the flexibility to repurchase securities at additional value during market disruptions. Repurchases are not funded from U.S. dollar reserves.”
*This is not investment advice.
