MSTR jumps after Strategy says it may sell more Bitcoin to fund dividends and buybacks
Strategy shares rose after the company introduced a Digital Credit Capital Framework to protect its capital structure amid falling Bitcoin prices and weakness in its preferred securities. The plan authorizes up to $2 billion in repurchases across preferred and common stock and gives management the option to sell Bitcoin if needed to fund dividends, interest, reserve replenishment, or buybacks. Strategy said it had about $2.55 billion in dollar reserves and roughly $3.8 billion in total liquidity coverage for preferred dividends and interest, with a policy requiring at least 12 months of coverage. It also raised the STRC dividend to 12% from 11.5%, though payouts remain board-approved and not guaranteed. The shift marks a move away from relying mainly on equity issuance to finance Bitcoin accumulation. Strategy still calls Bitcoin its primary treasury asset, but now has formal authority to use BTC as a liquidity source when market conditions make that preferable.
