Key facts
- MicroStrategy authorized an additional $2 billion in share buybacks for its Class A common stock.
- The company raised the dividend for its STRC preferred shares to 12%.
- A new Digital Credit Capital Framework was adopted, including a USD reserve policy.
- The framework permits limited bitcoin sales to fund reserves, dividends, debt obligations, and stock repurchases.
- MicroStrategy may sell up to $1.25 billion in Bitcoin under its 'BTC Monetization Program'.
MicroStrategy has unveiled a new "Digital Credit Capital Framework" that allows for the monetization of a portion of its Bitcoin holdings to fund dividends, increase cash reserves, and repurchase securities, while aiming to maintain its long-term Bitcoin strategy. The company raised the annual dividend rate for its STRC preferred stock to 12% and authorized an additional $2 billion for common stock buybacks. Under the new framework, MicroStrategy may sell up to $1.25 billion in Bitcoin to bolster its cash reserve, cover dividend and interest payments, and fund stock buybacks. The company stated its cash reserve has grown to $2.55 billion. MicroStrategy also reported that it did not acquire any Bitcoin during the week ended Sunday, leaving its holdings unchanged at 847,363 BTC. Shares of MicroStrategy (MSTR) snapped a nine-day losing streak, rebounding after the company signaled future liquidations of the digital asset would be formulaic. An analyst described the framework as "robust" and a "direct, point-by-point answer to the concerns investors have been voicing."