Strategy Overhauls Bitcoin Strategy, Plans Sales and Buybacks to Strengthen Reserves
The Bitcoin-treasury company Strategy (MSTR) is revamping its long-standing Bitcoin strategy to shift from a one-way capital approach to active capital management amid a crypto downturn. It plans to sell up to $1.25 billion of Bitcoin to fund a five-part framework: a US dollar reserve policy, a revised preferred-stock policy, a digital credit securities repurchase program, a common stock repurchase program (up to $1 billion), and a Bitcoin monetization program. The board will require reserves equal to at least one year of preferred-dividend payments, enabling up to $1 billion in preferred stock repurchases and up to $1 billion in common stock buybacks. With about $2.55 billion in USD reserves today, the sale could lift total reserves to roughly $3.8 billion, providing a cushion for dividends and interest. Strategy owns about 3% of all outstanding Bitcoin, and CEO Phong Le says the changes aim to create shareholder value through more flexible capital management.
