Strategy announced a new "Digital Credit Capital Framework" on Monday, establishing conditions for Bitcoin sales to manage corporate liquidity.
The board approved a "BTC Monetization Program" authorizing the firm to sell up to $1.25 billion in Bitcoin. Proceeds will bolster cash reserves, fund dividends on preferred stock like Stretch, and repurchase securities when strategic.
Executive Chairman Michael Saylor stated the firm remains committed to Bitcoin as its primary treasury asset but emphasized that digital credit requires active capital management. He noted the framework aims to strengthen credit quality and reduce preferred stock dividend obligations.
Strategy reported its USD reserve has been rebuilt to $2.25 billion, covering approximately 18 months of dividend payments. The announcement addressed prior analyst concerns regarding thinning cash reserves.
Following the news, Bitcoin traded near $59,800. Strategy shares advanced 5% in pre-market trading to $86.52.