Strategy Authorizes Bitcoin Sales for $2 Billion Buybacks and $1.25 Billion Reserve
Updated
Updated · CoinDesk · Jun 29
Strategy Authorizes Bitcoin Sales for $2 Billion Buybacks and $1.25 Billion Reserve
3 articles · Updated · CoinDesk · Jun 29
Summary
Strategy gave management formal board approval to sell bitcoin for specific uses, including a USD reserve, preferred dividends, interest payments and up to $2 billion of repurchases; the company said it is not required to sell.
Up to $1.25 billion of BTC sales can be used to build or replenish the reserve that backs preferred-share dividends and interest, part of a policy requiring at least 12 months of cash coverage.
At current prices, raising the full $1.25 billion would require selling about 20,800 BTC—roughly 2.5% of Strategy's 847,363-BTC treasury—while any sales beyond the approved uses would need fresh board approval.
The program sits inside Strategy's new Digital Credit Capital Framework, which also lifted the STRC preferred dividend to 12% from 11.5%; MSTR shares rose 3% after the announcement as bitcoin traded below $60,000.