Although Strategy typically starts the week by announcing how much Bitcoin it has recently bought, the firm instead told investors that its so-called USD Reserve had expanded to $2.55 billion, while drawing attention to a “BTC Monetization Program.”
Meanwhile, Strategy said it may occasionally repurchase common and preferred shares to capitalize on “market dislocations.” What’s more, the company would only issue common shares when the company is valued at a premium relative to its enterprise value.
In the announcement, Strategy Executive Chairman and co-founder Michael Saylor also said that the dividend for Stretch (STRC) had been raised an eighth time, putting it on track to offer 12% annually across distributions that are made twice a month.
In a note shared by Mark Palmer, managing director and senior research analyst at Benchmark-StoneX, he described Strategy’s framework as “robust,” while reiterating a “Buy” rating and $570 price target.
“The upshot is that Strategy is now an active manager of both sides of its capital structure, an approach that we view as a significant positive for its shareholders,” Palmer wrote, calling the framework a “direct, point-by-point answer to the concerns investors have been voicing.”
Meanwhile, the firm’s Bitcoin stockpile stood unchanged at 847,363 Bitcoin. Valued at $51 billion, the company’s stockpile showed around $13.1 billion in unrealized losses.
