Strategy ' s latest disclosure indicates that the company has been authorized by the Board to sell a part of the bitcoin in specific circumstances under the new capital management framework. This was the first time that it had formally incorporated bitcoin into the capital arrangement, which could be used to replenish the United States dollar reserve, support priority share dividends and interest payments, and provide a source for stock buy-backs.

The saleable use has been restricted

The bulletin indicated that the document did not set a ceiling on the total value of the sale of bitcoin, but clarified the scope of the authorization. Management may carry out operations when it is determined that the sale of Bitcoin is more appropriate than the issuance of a general unit A or other form of financing, and additional approval from the Board is required for purposes beyond those for which they were intended.

Of that amount, up to $1.25 billion in bitcoin could be sold to build or replenish the company ' s dollar reserves. This reserve is used mainly to cover priority share dividends and interest expenditures. Once the relevant distribution has been completed, the company may also continue to sell bitcoin to restore the size of the reserve.

Up to $2 billion.

The plan also allows companies to sell bitcoin to finance two types of buy-backs, including up to $1 billion in digital credit securities and up to $1 billion in general equity in category A. Neither repurchase plan had a due date.

  • United States dollar reserve-related sales cap of $1.25 billion
  • Digital credit instruments up to $1 billion
  • A Generalized stock buy-back cap of $1.0 billion

STRC dividends up to 12%

This set of arrangements, known as Digital Credit Capital Framework, also synchronized the rate of interest in the priority share STRC from 11.5% to 12%. At the same time, the company formally adopted the United States dollar reserve policy and required that sufficient cash be retained to cover the priority share red and interest obligations for at least 12 months.

According to the company, the framework aims to enhance liquidity and flexibility in capital management while maintaining long-term bitcoin exposure. After the news was released, MSTR stock prices increased by about 3 per cent; at the time of the report, bitcoin was still below $60,000.

Additional information:Strategy is one of the largest listed companies in the world with bitcoin, so whether or not it sells bitcoin is not only related to the corporate financing structure, but is also seen by the market as an observation signal of a change in the strategy of the listed company's Bitcoin bank.