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 says the $2.55 billion reserve, which includes expected proceeds from its at-the-market share program, covers approximately 17.4 months of its roughly $1.76 billion in annual preferred stock dividend and interest obligations.
The Board adopted a policy requiring the reserve to maintain at least 12 months of coverage going forward.
The newly authorized BTC Monetization Program allows Strategy to sell up to $1.25 billion worth of BTC to fund or replenish the USD Reserve, cover dividend and interest payments, or fund stock repurchases. Combined with the cash reserve, the company says it now has approximately 25.9 months of preferred dividend liquidity coverage.
According to Michael Saylor:
“Strategy remains committed to Bitcoin as its primary treasury reserve asset. At the same time, Digital Credit requires liquidity, discipline, and active capital management. This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive.”
Strategy has also raised the dividend rate on its STRC preferred stock to 12.00% annually starting in July and authorized $1 billion in buybacks each for its Digital Credit Securities and its Class A common stock (MSTR).
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