[DigitalToday reporter Chi-gyu Hwang] Strategy approved the sale of up to $1.25 billion worth of bitcoin under a new capital management system. Cointelegraph reported on Thursday that Strategy, which had maintained a stance of only buying bitcoin and not selling, adjusted its capital allocation strategy toward considering both liquidity management and shareholder returns.
Strategy said it could use proceeds from bitcoin sales to fund shareholder dividends, bolster cash reserves and buy back shares. At current prices, about 21,000 BTC could come to market. The new "Digital Credit Capital Framework" also includes a bitcoin monetisation programme.
It raised the annual dividend rate on STRC preferred shares to 12 percent from 11.5 percent. It also expanded purchases of preferred securities and MSTR shares. The company said a dedicated cash reserve rose to $2.55 billion, enough to cover preferred dividends and interest payments for about 17 months. Strategy sold 32 BTC in June and, last week, maintained total holdings of 847,363 BTC without additional purchases.
Chi-gyu Hwang
delight@d-today.co.kr