Strategy approves plan to sell up to $1.25B in Bitcoin to fund dividends
Security & Exploits ·
MicroStrategy's Strategy business unit has adopted a new capital framework that could see it liquidate as much as $1.25 billion of its Bitcoin holdings to cover payments on its preferred stock.
The company's board approved the Digital Credit Capital Framework alongside a BTC Monetization Program, according to Decrypt, which reported the plan permits sales of up to $1.25 billion in Bitcoin for what the company describes as active capital management. As part of the same overhaul, Strategy raised its preferred dividend rate to 12%, a move framed as an attempt to reassure preferred shareholders while keeping the bulk of its Bitcoin treasury intact.
The framework arrives as Strategy faces scrutiny over how it services its debt-and-dividend obligations without repeatedly tapping equity markets. CryptoPotato characterized the new structure as a direct response to critics who have questioned the sustainability of funding preferred payouts purely through issuance, framing the plan as a way to protect the company's core