Strategy Launches Digital Credit Capital Framework, Approves $1.25B Bitcoin Liquidation and Two $1B Buyback Plans

According to Strategy's 8-K filing with the U.S. SEC, the company unveiled its digital credit capital framework today, comprising five core components: dollar reserve policy, STRC dividend policy adjustment, preferred and common stock buyback plans, and a Bitcoin liquidation plan.

The dollar reserve, which totaled $2.55 billion as of June 28, may only be used for preferred stock dividends and debt interest payments. Strategy increased the annualized STRC dividend rate to 12%, effective July 1, with rates to be assessed dynamically based on trading price, market yields, credit spreads, and Bitcoin volatility. The company authorized two separate $1 billion buyback programs for preferred shares (STRC, STRF, STRD, STRK) and Class A common stock, without drawing on dollar reserves. Additionally, the board approved a Bitcoin liquidation plan allowing the company to raise up to $1.25 billion through Bitcoin sales to supplement dollar reserves, fund dividend payments, or support the buyback programs.