Strategy (NASDAQ: $MSTR) has announced a new $2 billion U.S. stock buyback program as it looks to attract investors and boost its share price.
The board of directors at the Bitcoin (CRYPTO: $BTC) treasury firm 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
The share repurchase program has no expiration date. More From Cryptoprowl: The company led by Chairman Michael Saylor also unveiled a new “Digital Credit Capital Framework” that is designed to strengthen Strategy’s preferred stock (NASDAQ: $STRC). The Capital Framework will preserve long-term Bitcoin exposure and give Strategy more balance sheet flexibility, said the company in a statement.
Strategy’s preferred stock currently pays a bi-monthly dividend that yields 12%. The company provided an update on its cash reserves, saying they now stand at $2.55 billion U.S., enough to cover 17 months of dividends on the preferred stock. Strategy’s board has also approved a “Bitcoin Monetization Program” that will allow the company to sell Bitcoin when management deems it advantageous.