Svmuu News: Strategy launched the “Digital Credit Capital Framework” on Monday, disclosing the conditions under which it may sell “Bitcoin” in the future. The company’s board of directors has approved a plan allowing Strategy to sell up to $1.25 billion in “Bitcoin” to replenish cash reserves, make payments for products such as Stretch (STRC), or repurchase securities such as common stock when appropriate.
Michael Saylor, Strategy’s co-founder and executive chairman, stated that the company will continue to treat Bitcoin as its primary treasury reserve asset, while Digital Credit requires liquidity, discipline, and proactive capital management. Saylor noted that the framework is designed to strengthen credit quality and reduce expected preferred stock dividend payments when such actions are value-enhancing.
Strategy did not disclose any new plans to purchase “Bitcoin” this time and indicated that its USD Reserve has recovered to $2.25 billion. The company stated that, at current levels, its cash reserves are sufficient to cover approximately one and a half years of dividend payments.