Michael Saylor’s Strategy rolled out something it’s calling the Digital Credit Capital Framework, and the headline is simple: the company can now sell Bitcoin to fund dividends, stock buybacks, and debt costs. It’s a shift for a company that’s built its identity around buying and holding as much BTC as possible.
The framework, detailed in a Monday 8-K SEC filing, includes a Bitcoin monetization program covering up to $1.25 billion. Strategy also bumped its STRC preferred stock dividend rate to 12%, up from 11.5%, and authorized separate buyback programs for preferred securities and Class A MSTR common stock.
Strategy’s cash reserve now sits at $2.55 billion, which the company says covers roughly 17 months of preferred stock dividends and interest payments. Under the new rules, that reserve can only be tapped for those obligations and must stay above a 12-month minimum unless the board says otherwise. Saylor claims the reserve plus monetization capacity gives Strategy up to $3.8 billion in dividend coverage — nearly 26 months.
The filing lands during a rough stretch. MSTR shares are down almost 50% year-to-date. STRC dropped as low as $71.25 on Friday, a 28.75% discount to par. Grayscale’s research head Zach Pandl recently argued Strategy should sell $3 billion in Bitcoin to cover cash obligations. MSTR shares jumped more than 5.5% ahead of Monday’s opening bell.
One notable detail: Strategy didn’t buy any Bitcoin last week. Holdings remain at 847,363 BTC, purchased for $64.1 billion at an average of $75,651 each. Bitcoin currently trades around $60,018. The company raised $1.15 billion in net proceeds by selling 12.67 million MSTR shares during the same period.
