Strategy (NASDAQ:MSTR) says it will sell its Bitcoin holdings to buy back its own shares.
Strategy, the original digital asset treasury company that became Bitcoin’s proxy, is expected to sell up to $1.25 billion in BTC. The company also updated its dividend policy by increasing its payout on preferred stock.
Up to $1 billion of proceeds will be used to repurchase preferred shares.
The strategy also noted that it sold approximately 12.67 million MSTR shares between June 22 and 28 for net proceeds of $1.152 billion.
One 8-K filingThe strategy stated:
The Company’s Board of Directors has authorized a BTC monetization program under which the Company may sell bitcoin from time to time for three primary purposes:
- Generating up to $1.25 billion in additional revenue to fund the US Dollar Reserve;
- to additionally fund preferred stock dividends and interest expense as they become payable or to replenish the U.S. Dollar Reserve after such payments if management determines that doing so is more advantageous than issuing Class A common stock or other capital markets transactions; And
- to additionally fund repurchases of Digital Credit Securities or class A common stock, including applicable taxes, fees and transaction costs, under the repurchase programs described above.
Strategy Shares have fallen in recent weeks due to the decline in Bitcoin price. Today Strategy shares react positively to the news, rising by 11%.
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