Strategy, the world’s largest publicly traded Bitcoin holder, has taken another break from its weekly purchases and did not buy any Bitcoin last week.
Accordingly, the company’s $BTC holdings remain at 847,363 $BTC, while company founder Michael Saylor made a new announcement regarding Bitcoin and USD reserves.
According to Saylor, in a statement from account X, the company announced that it had increased its dollar reserves to $2.55 billion. According to Saylor, these dollar reserves can only be used to pay dividends and interest expenses.
“Strategy has increased its USD Reserve to $2.55 billion, representing 17.4 months of dividend coverage. The USD Reserve can only be used to cover dividends and interest expenses and will be held for a minimum of 12 months.”
Saylor also announced a Digital Credit Capital Framework designed to strengthen Digital Credit, increase liquidity, protect long-term Bitcoin exposure, and support long-term value creation.
This framework includes a Bitcoin Monetization Program that allows Bitcoin investors to sell their Bitcoin assets to replenish dollar reserves, pay dividend and interest expenses, and use the proceeds to repurchase digital credit securities and MSTRs.
At this point, the limit for converting Bitcoin to cash in order to replenish dollar reserves has been set at $1.25 billion.
“Strategy has established a $BTC Monetization Program through which we can sell Bitcoin to finance the following elements:
– USD Reserves
– Dividend and interest expenses
– Repurchases of our Digital Credit securities and MSTR under our buyback programsCombining its $2.55 billion dollar reserves and $1.25 billion in Bitcoin liquidity, Strategy’s total dividend payout capacity is $3.8 billion, equivalent to 25.9 months.
The company also authorized up to $1 billion in buybacks of Digital Credit Securities and $1 billion for MSTR buybacks; it also increased the annual STRC dividend rate from 11% to 12%.
Saylor also added that Strategy has established buyback programs of up to US$1.0 billion for digital credit securities and up to US$1.0 billion for MSTR.
“…This will provide the flexibility to repurchase securities by adding value during market disruptions. Repurchases will not be financed from the US Dollar Reserve.”
*This is not investment advice.
