Strategy unveils capital framework to preserve Bitcoin exposure, pay dividends
Strategy unveiled a new “Digital Credit Capital Framework” to support dividends, cash reserves, and buybacks while keeping its long-term Bitcoin strategy. It raised the STRC preferred dividend to 12% from 11.5% and authorized repurchases of preferred securities and Class A MSTR shares. The company may sell up to $1.25 billion in Bitcoin to help fund dividends, debt costs, cash reserves, and buybacks. Its cash reserve has increased to $2.55 billion, enough for about 17 months of preferred dividend and interest payments, with a minimum 12-month reserve required. Strategy said total coverage could reach $3.8 billion, or nearly 26 months. It also reported no Bitcoin purchases for the week, holding 847,363 BTC, while raising about $1.15 billion net from selling MSTR shares.
