Strategy launches $2.55B reserve and digital credit framework

Strategy launched a Digital Credit Capital Framework, raising USD reserves to $2.55B, increasing STRC dividends to 12%, and approving $2B in repurchase programs to boost liquidity and Bitcoin exposure.

Strategy has introduced a Digital Credit Capital Framework to enhance its digital credit operations, improve liquidity, and maintain long-term Bitcoin exposure. Key elements include a board-approved USD reserve policy, a revised STRC dividend policy, and $1 billion each allocated for digital credit securities and common stock repurchase programs. The framework also features a Bitcoin monetization plan to further strengthen liquidity. The company increased its U.S. dollar reserves to $2.55 billion, covering approximately 17.4 months of dividend and interest obligations, with a minimum reserve policy set at 12 months. The STRC dividend rate was raised to 12%, and a target price range of $99 to $100 for STRC was established. This new framework aims to balance digital credit issuance with Bitcoin holdings and cash reserves, keeping funding costs attractive and avoiding over-leverage. Strategy also highlighted potential risks, such as Bitcoin price declines that could affect reserve coverage.