MicroStrategy IncorporatedCompany announces $2B buyback program and new capital framework, boosting stock price.

Strategy has announced a new $2 billion U.S. stock buyback program. The board authorized up to $1 billion U.S. in repurchases of Strategy's Digital Credit Securities and $1 billion U.S. in buybacks of the company's Class A common stock, with no expiration date. The company also unveiled a Digital Credit Capital Framework to strengthen its preferred stock, which pays a bi-monthly dividend yielding 12%, and reported cash reserves of $2.55 billion U.S., enough to cover 17 months of dividends. Additionally, the board approved a Bitcoin Monetization Program allowing Bitcoin sales to fund reserves, dividends, interest payments, and buybacks. The moves follow sharp declines in Strategy's main and preferred shares amid concerns over dividend sustainability, though MSTR stock rose 6% in pre-market trading and STRC stock gained 10% on the day.
MicroStrategy IncorporatedCompany announces $2B buyback program and new capital framework, boosting stock price.