BlockBeats news, on June 29, according to an 8-K filing submitted by Strategy to the U.S. SEC, the company announced the launch of its "Digital Credit Capital Framework," comprising five key components: the U.S. dollar reserve policy, adjusted STRC dividend policy, preferred stock repurchase program, common stock repurchase program, and BTC liquidation plan. Under the U.S. dollar reserve policy, the reserve may only be used to pay preferred stock dividends and debt interest, and management must maintain a reserve size sufficient to cover at least 12 months of expected dividend and interest payments.
As of June 28, the U.S. dollar reserve balance stood at $2.55 billion. Regarding STRC dividends, the company will dynamically assess the dividend rate on a monthly basis, taking into account factors such as trading price, market yield, credit spreads, and Bitcoin price volatility, and will not increase the dividend solely because the STRC trading price is below par value. The company also announced an increase in the annualized dividend rate for STRC to 12.00%, effective July 1. In terms of the repurchase program, the company has established two separate $1 billion repurchase authorizations, one for repurchasing preferred shares including STRC, STRF, STRD, and STRK, and another for repurchasing Class A common stock, with STRC being the primary focus of the preferred share repurchase program. Neither repurchase program will utilize U.S. dollar reserve funds. Additionally, the company’s board has authorized a BTC liquidation plan, permitting the company to raise up to $1.25 billion by selling Bitcoin to supplement its U.S. dollar reserves, pay preferred stock dividends and interest expenses, or fund the aforementioned repurchase programs.