Svmuu News: Strategy officially launched its "Digital Credit Capital Framework," introduced the "Bitcoin" authorization mechanism, and simultaneously established a share buyback plan with a cap of $1 billion.
The company’s board of directors has defined three categories of compliant scenarios for selling Bitcoin: First, to replenish U.S. dollar reserves, adding up to $1.25 billion in cash; current U.S. dollar reserves stand at approximately $2.555 billion. Second, when it is more cost-effective than raising capital through new share issuances, to sell BTC to pay dividends and interest on preferred shares;third, to allocate funds for common and preferred stock buyback programs and cover transaction fees and taxes.
Sales exceeding the aforementioned purposes or limits Bitcoin must undergo additional approval by the Board of Directors; this framework has no fixed term and imposes no mandatory sale requirements, and the company may adjust or suspend it at any time.
Industry analysts note that this plan is part of a bear-market liquidity management toolkit designed to address issues such as dividend payments and pressure on the stock price; it is intended solely as a short-term, flexible adjustment measure. Strategy’s core strategy of long-term coin accumulation and leveraging financial instruments to amplify its exposure to Bitcoin remains unchanged.