MicroStrategy adopts a new framework allowing Bitcoin sales and $2 billion in stock buybacks to address its undervalued shares.
MicroStrategy Inc. abandoned its “never sell” Bitcoin strategy, introducing a Digital Credit Capital Framework to monetize its holdings. The company announced a $1.25 billion Bitcoin monetization program, permitting sales to fund dividends, cover interest, and build cash reserves.
The move follows a period of underperformance, with the company’s stock trading below the value of its Bitcoin holdings. MicroStrategy also authorized $2 billion in buybacks, evenly split between common and preferred shares, to capitalize on market dislocations without depleting cash reserves.
Bitcoin (BTC) dipped 1.3% to $58.9k amid broader crypto market stability, while MicroStrategy’s stock surged 13% on the announcement. The framework marks a strategic pivot for the company, which holds over 214,000 BTC.