Strategy has announced a new capital strategy called the Digital Credit Capital Framework, pivoting from a Bitcoin acquisition-focused approach to one centered on capital efficiency. According to a weekly report from CryptoQuant, the company unveiled a framework built on pillars including a USD reserve system to support preferred stock dividends, raising the STRC dividend yield to 12%, up to 1 billion dollars in preferred stock buybacks and share repurchases, and a Bitcoin sale program to be used as needed. In fact, from June 29 to July 5, the company sold approximately 3,588 Bitcoin, securing around 216 million dollars, raised roughly 466.7 million dollars through at-the-market equity issuance, and expanded its USD reserves from about 1.4 billion dollars to approximately 3 billion dollars, improving its dividend payment capacity from around 14 months to about 29 months. The market has given some credit, with the preferred stock STRC recovering from roughly 75 dollars to about 88 dollars, but CryptoQuant points out that challenges remain, including the lack of clear rules for resuming Bitcoin purchases and a profit-taking strategy during bull markets.
MicroStrategy IncorporatedStrategy shifts from Bitcoin acquisition to capital efficiency framework, including preferred stock buybacks and equity issuance, but Bitcoin sale program and unclear purchase rules create mixed signals.