Strategy (MSTR) unveiled a new Digital Credit Capital Framework on Monday that introduces a series of capital management initiatives designed to strengthen its preferred securities, preserve long-term bitcoin exposure and improve balance sheet flexibility.
The Company has already adopted a board-approved US dollar reserve policy and increased the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 12%, effective for dividend periods beginning July 1. The strategy said its US dollar reserve currently stands at approximately $2.55 billion, enough to cover about 17.4 months of preferred dividend and interest obligations.
The board also authorized, but did not commit to, up to $1 billion in repurchases of its digital credit securities and up to $1 billion in repurchases of its Class A shares. The programs have no fixed expiry date and can be changed, suspended or terminated at any time. Actual buybacks will depend on market conditions and management’s assessment that they are increasing.
