Strategy disclosed that the Board had approved a new “digital credit capital framework” that allowed the company to sell bitcoin in specific circumstances to replenish the United States dollar reserve, pay preferential dividends and interest on debt, and buy back part of the securities. The company also raised the annualized dividends of STRC to 12 per cent.

Michael Saylor, founder and Executive Director, stated that the company still had Bitcoin as a reserve asset for its main treasury. However, under the new capital arrangements, bitcoin is also integrated into more proactive liquidity management tools. Following the release of the information, an increase of 4.94 per cent was reported in advance of MSTR, amounting to US$ 86.38.

Increase in United States dollar reserves to $25.5 billion

The company disclosed that the new reserve policy provided that, in principle, the United States dollar reserve should only be used to cover interest on preferential dividends and outstanding debts, with separate approval of the board of directors.

According to the company ' s current estimates, annual priority dividends and interest expenditures are estimated at US$ 17.66 billion. In this way, the $2.55 billion reserve could cover approximately 17.4 months of expenditure. The Board also set a minimum reserve rate, that is, a minimum of 12 months of expected dividends and interest expenditure, below which authorization would also be required.

STRC dividends up to 12%

Strategy increases the annualized dividends of STRC, the permanent priority of the series A, to 12.00 per cent, for the half-monthly interest-bearing period corresponding to the date of 1 July 2026 and thereafter.

According to the company, the objective was to keep the SRC long-term transaction price between approximately $99 and $100, close to $100. However, companies have also cautioned that the actual transaction price of the STRC may deviate from this range and may even be significantly below the nominal value.

Strategy also stated that dividends would not automatically increase simply because the STRC price was below face value. The related bonus still needs to be approved by the Board and is not a fixed commitment.

Approval of $2 billion repurchase arrangements

The company disclosed that the board had approved a return of up to $1 billion in digital credit securities covering STRC, STRF, STRD and STRK. The management stated that the initial focus might have been on STRC if the repurchase had had a strong effect.

In addition, the Board separately approved a repurchase plan of up to $1 billion for regular MMTRA units. Repurchases may include open-market purchases, large-scale transactions, private consultations, offers or other legal means.

The company stressed that the related buy-back would not use the United States dollar reserve. If the repurchase is financed by the sale of bitcoin, the new bitcoin liquidation plan will be included.

Bitcoin can be used to replenish reserves and buy back.

In accordance with the Board ' s mandate, Strategy could sell bitcoin through the Bitcoin Liquidation Plan for three main purposes: to raise the United States dollar reserve by up to $1.25 billion, to pay priority dividends and interest expenditures, and to finance digital credit securities or MSTR buy-backs.

According to the company, the plan did not imply the need to sell bitcoin, and whether or not it was still dependent on market conditions, liquidity requirements, taxation, accounting treatment, legal requirements and management's judgement of long-term shareholder value.

Andrew Kang, Chief Finance Officer, stated that this arrangement gave companies greater flexibility to use bitcoin reserves to support digital credit and repurchase. The current reserve of $25.5 billion, based on the company ' s calibre, together with a reserve replenishment authorization of up to $1.25 billion, currently covers approximately 25.9 months of priority dividends and interest expenditure.

Additional information:Chief Executive Officer Strategy Phong Le stated that the company was moving from one-way financing to active capital management, i.e. issuing securities when financing conditions were favourable and repurchased securities when market prices were appropriate.