Strategy (MSTR) on Monday unveiled a new Digital Credit Capital Framework, introducing 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 of its Series A variable rate perpetual stretch preferred stock (STRC) to 12%, effective for dividend periods beginning July 1. Strategy said its US dollar reserve currently stands at about $2.55 billion, enough to cover about 17.4 months of preferred interest and dividend obligations.
The board also authorized, but did not commit, up to $1 billion in repurchases of its digital credit securities and up to $1 billion in repurchases of its Class A common stock. The programs have no fixed expiration date and may be modified, suspended or terminated at any time. Actual repurchases will depend on market conditions and management’s assessment that they are accretive.
