Strategy unveils capital framework to preserve Bitcoin exposure, pay dividends
Michael Saylor’s Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends, a $2.55 billion reserve and buybacks while raising STRC payout to 12%.
Strategy is adopting a new capital framework that allows it to monetize part of its Bitcoin holdings to fund dividends, build cash reserves and repurchase securities while maintaining its long-term Bitcoin strategy.
In a Monday 8-K filing with the US Securities and Exchange Commission, Strategy introduced its “Digital Credit Capital Framework,” which includes a Bitcoin monetization program and changes to its STRC preferred stock dividend policy.
The company has raised the STRC annual dividend rate to 12% from 11.5% and authorized separate buyback programs for preferred securities and its Class A MSTR common stock. Strategy said it may sell Bitcoin (BTC) to raise as much as $1.25 billion to increase its cash reserve, pay dividends and debt costs, as well as fund stock buybacks.
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