Strategy has authorized up to $2 billion in share and preferred security repurchases and approved a Bitcoin monetization program that could generate up to $1.25 billion to bolster its USD reserve, as the software company moves to strengthen its capital structure and support its preferred stock offerings, according to a Digital Credit Capital Framework unveiled on Monday.
The new framework establishes a Board-approved cash reserve policy, updates the dividend policy for its STRC preferred shares, authorizes up to $1 billion of repurchases for Digital Credit Securities and another $1 billion for Class A common stock, and creates a Bitcoin monetization program.
Under the monetization program, Strategy may sell Bitcoin to generate up to $1.25 billion for its U.S. dollar reserve, replenish cash used for dividend and interest payments, or finance repurchases of preferred securities and common stock. The company said any Bitcoin sales outside those purposes would require additional Board approval.
Strategy reported no Bitcoin purchases during the week ended June 28. It continues to hold 847,363 Bitcoin acquired for approximately $64 billion, representing an average purchase price of $75,651 per Bitcoin.
