Strategy Inc. has introduced a Digital Credit Capital Framework, which incorporates share repurchase initiatives for up to $1 billion each of its preferred securities and its Class A common shares, as detailed in a company statement.
Shares of Strategy jumped about 7% on the news.
The firm reported a USD Reserve of about $2.55 billion as of Saturday. This figure includes anticipated cash from shares sold under its at-the-market offering program that had not yet been settled. This reserve is specifically allocated to back the payment of dividends on preferred stock and interest on existing debt.
The board at Strategy has instituted a policy mandating a minimum USD Reserve that must cover at least 12 months of projected annual preferred stock dividend payments and interest costs. Given the current annual expectations for these payments and interest expenses of roughly $1.76 billion, the existing $2.55 billion reserve provides a coverage buffer of approximately 17.4 months.
This announcement follows a period of pressure for the company's Strike preferred stock (STRK), which has dropped nearly 11% in the past week, trading at $53.79 and nearing its 52-week low of $49.80. Even with this recent market fluctuation, data indicates STRK provides a substantial dividend yield of 14.87% to its investors. The company holds a robust liquidity position, reflected by a current ratio of 6.05, signifying that its liquid assets comfortably surpass its short-term liabilities. Subscribers have access to 10 additional exclusive insights regarding STRK's financial standing and market position.
The company also declared it will raise the regular dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (NASDAQ: STRC) to 12.00% per year. This increase will be effective for semi-monthly periods where the record date falls on or after July 1, 2026.
Strategy's board has approved a BTC Monetization Program, permitting the company to sell Bitcoin to raise as much as $1.25 billion. The proceeds from this initiative are intended to bolster the USD Reserve, finance preferred stock dividends and interest expenses, or support the repurchase of preferred securities or Class A common stock. The company affirmed that Bitcoin continues to be its principal treasury reserve asset.
The Digital Credit Securities repurchase initiative encompasses STRC, the 10.00% Series A Perpetual Strife Preferred Stock (NASDAQ: STRF), the 10.00% Series A Perpetual Stride Preferred Stock (NASDAQ: STRD), and the 8.00% Series A Perpetual Strike Preferred Stock (NASDAQ: STRK).
These share buybacks may be executed through various methods, including open-market acquisitions, block trades, privately negotiated deals, or other lawful avenues. The authorizations for these repurchases do not have set expiration dates and can be altered, paused, or discontinued at any point.
In separate company developments, Stark Power Ltd. has confirmed a definitive agreement to take over Sagebrush Infrastructure Partners, LLC. This acquisition grants full ownership of Sagebrush, a developer focused on hyperscale data centers and co-located natural gas-fired power generation facilities. Sagebrush's project portfolio includes five data center campuses under development in the Central United States, boasting a combined IT capacity of around 5.6 gigawatts. Among these, the Sagebrush 1 site is distinguished by its potential to accommodate over 1.5 gigawatts of IT capacity. This move signifies a major strategic expansion for Stark Power into the data center industry. These actions align with Stark Power's broader plan to strengthen its infrastructure portfolio. Specifics of the deal were provided in a recent press release issued by the company.
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