Strategy (formerly MicroStrategy) Launches 'Digital Credit Capital Framework': Authorizes Sale of $1.25 Billion in Bitcoin, Ending 'Never Sell' Strategy

Amid a severe crisis driven by a plunge in its preferred stock STRC price, an annual dividend obligation ballooning to $1.2 billion, strained cash reserves, and regulatory investigations, Strategy (formerly MicroStrategy) has unveiled a 'Digital Credit Capital Framework.' The framework authorizes the sale of up to $1.25 billion in Bitcoin, establishes a $2.55 billion cash reserve, raises STRC dividends to 12%, and initiates $1 billion each in preferred and common stock buybacks. This marks a definitive end to its long-standing 'never sell' Bitcoin pledge, shifting to a flexible capital management approach. The move has major implications for cryptocurrency market sentiment and the industry's approach to Bitcoin treasury strategies.