Strategy, a Virginia-based software firm and large corporate bitcoin holder, introduced a Digital Credit Capital Framework on June 29.

The plan included a board-approved US dollar reserve policy and raised the annual dividend rate on its Variable Rate series A Perpetual Stretch Preferred Stock (STRC) to 12%, effective for dividend periods beginning July 1.

The company said its US dollar reserve stood at about US$2.55 billion, enough to cover about 17.4 months of preferred dividend and interest obligations.

Its board also authorized, but did not commit to, up to US$1 billion in repurchases of Digital Credit Securities, and up to US$1 billion in buybacks of Class A common stock.

The programs have no fixed expiration date.

Strategy also approved a Bitcoin Monetization Program that allows management to sell bitcoin when it considers it advantageous.

Proceeds may be used to build or replenish the US dollar reserve, fund preferred dividends and interest payments, or finance share repurchases.

The company said the program does not require it to sell any bitcoin.

🔗 Source: CoinDesk