Michael Saylor's Strategy said it can now sell Bitcoin to fund dividends, interest and stock buybacks, formalizing a capital pivot for the world's largest corporate holder of the cryptocurrency.
The company, which holds 847,363 BTC, said in a press release and an 8-K filing with the U.S. Securities and Exchange Commission on Monday that its board approved a "Digital Credit Capital Framework" with five parts: a U.S. dollar reserve policy, a revised dividend policy for its STRC preferred stock, a $1 billion buyback program for its preferred securities, a $1 billion buyback program for its MSTR common stock, and a Bitcoin monetization program. Saylor also announced the framework in a post on X.
Under the framework, Strategy raised the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, to 12% from 11.5%, effective for record dates on or after July 1. It set its dollar reserve at about $2.55 billion as of June 28, enough to cover roughly 17.4 months of preferred dividends and interest against annual obligations of about $1.76 billion.
The board authorized up to $1.25 billion of Bitcoin sales to rebuild that reserve, which the company said would bring total dividend and interest coverage to about $3.8 billion, or 25.9 months.
