Strategy approves $1 billion stock buyback and Bitcoin monetization plan

Strategy on Monday unveiled a sweeping overhaul of its capital management strategy, including a program that allows the company to sell Bitcoin to support liquidity, preferred stock obligations and up to $2 billion of authorized share repurchases, according to a new SEC filing.

The new framework establishes a Board-approved cash reserve policy, updates the dividend policy for its STRC preferred shares, authorizes up to $1 billion of repurchases for Digital Credit Securities and another $1 billion for Class A common stock, and creates a Bitcoin monetization program.

Under the monetization program, Strategy may sell Bitcoin to generate up to $1.25 billion for its U.S. dollar reserve, replenish cash used for dividend and interest payments, or finance repurchases of preferred securities and common stock. The company said any Bitcoin sales outside those purposes would require additional Board approval.

Strategy reported no Bitcoin purchases during the week ended June 28. It continues to hold 847,363 Bitcoin acquired for approximately $64 billion, representing an average purchase price of $75,651 per Bitcoin.

The company also disclosed that it raised approximately $1.15 billion in net proceeds through sales of 12.67 million Class A shares under its at-the-market equity program during the reporting period, while no preferred securities were issued under its ATM programs.

This is a developing story.