Overview
- Strategy unveiled its five‑part Digital Credit Capital Framework on Monday, raising the STRC preferred dividend to 12% and establishing a $2.55 billion USD reserve to cover dividend and interest obligations.
- The board authorized up to $1 billion in preferred‑security buybacks and $1 billion in common‑stock repurchases to be funded outside the USD reserve or through bitcoin monetization when judged accretive.
- A Bitcoin Monetization Program permits up to $1.25 billion of BTC sales to rebuild the cash reserve, fund preferred dividends and interest, or finance buybacks, with any other uses requiring board approval.
- The moves follow weeks of pressure as STRC traded roughly $71–$75 versus $100 par and Strategy’s enterprise mNAV slipped to about 0.99, eroding the firm’s previous capital‑raising advantage.
- Strategy holds about 847,363 BTC with roughly $13–$14 billion in unrealized losses, and the new framework aims to protect short‑term liquidity while leaving room for disciplined long‑term bitcoin exposure.