Michael Saylor’s Strategy has increased its USD reserve to $2.55 billion and unveiled a new Bitcoin (BTC) Monetization Program as part of a broader capital framework.
The Nasdaq-listed Bitcoin Treasury company say The $2.55 billion reserve, which includes expected proceeds from its at-the-market equity program, covers about 17.4 months of its approximately $1.76 billion in annual preferred stock dividend and interest obligations.
The board has adopted a policy requiring the reserve to maintain at least twelve months of coverage going forward.
With the newly authorized BTC Monetization Program, Strategy can sell up to $1.25 billion worth of BTC to fund or replenish USD reserves, cover dividend and interest payments, or fund stock buybacks. Combined with the cash reserve, the company says it now has approximately 25.9 months of preferred dividend liquidity coverage.
According to Michael Saylor:
“The strategy remains committed to Bitcoin as its core treasury reserve. At the same time, Digital Credit requires liquidity, discipline and active capital management. This framework is designed to strengthen credit quality and allow the company to reduce expected preferred stock dividend payments as it increases.”
Strategy also increased the dividend rate on its STRC preferred shares to 12.00% per annum from July and approved $1 billion in buybacks for each of its Digital Credit Securities and its Class A common stock (MSTR).
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Credit : dailyhodl.com
