Strategy (NASDAQ:MSTR) says it will sell Bitcoin holdings to buy back its own shares.
Strategy, the original digital asset treasury firm that has become a proxy for Bitcoin, is expected to sell up to $1.25 billion of BTC. The company also updated its dividend policy increasing its payout for preferred shares.
Proceeds of up to $1 billion will be used to repurchase preferred shares.
Strategy also stated that it had sold approximately 12.67 million MSTR shares for $1.152 billion net proceeds from June 22 to 28th.
In an 8-K filing, 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:
- to generate up to $1.25 billion of additional proceeds to fund the USD Reserve;
- to additionally fund preferred stock dividends and interest expense as they become payable, or to replenish the USD Reserve after such payments, when management determines that it 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 related taxes, fees, and transaction expenses, under the repurchase programs described above.
Shares of Strategy have cratered in recent weeks due to the decline in the price of Bitcoin. Today, Strategy shares are reacting positively on the news rising by 11%.
