Strategy Authorizes Bitcoin Sales for Reserve, Buybacks Under New Capital Plan
Strategy (MSTR), the world's largest publicly traded bitcoin holder, has authorized a new bitcoin monetization program as part of its Digital Credit Capital Framework. The program allows the company to sell bitcoin for specific purposes, including funding up to $1.25 billion for its USD Reserve to support preferred stock dividends and interest payments, as well as up to $1 billion for Digital Credit Securities repurchases and $1 billion for Class A common stock buybacks. The filing does not set an overall cap on bitcoin sales; any monetization beyond these purposes requires additional board approval. At current prices, selling $1.25 billion worth of bitcoin would require roughly 20,800 BTC, about 2.5% of Strategy's 847,363 BTC holdings. The company emphasized it is not obligated to sell any bitcoin and will only do so when it determines such sales are more advantageous than issuing common stock or other financing. This marks Strategy's first formal authorization to monetize its bitcoin treasury. MSTR shares rose 3% on the announcement. The framework also includes increasing the dividend on its preferred stock STRC to 12% and maintaining a USD Reserve covering at least 12 months of dividend and interest obligations.
Key facts
- Strategy authorized selling up to $1.25B BTC for USD Reserve to fund dividends and interest.
- Up to $1B BTC sales allowed for Digital Credit Securities repurchases.
- Up to $1B BTC sales allowed for Class A common stock buybacks.
- No overall cap on BTC sales; additional purposes require board approval.
- MSTR shares up 3%; selling $1.25B BTC equals ~2.5% of holdings.