MicroStrategy unveils $1.25 B Bitcoin monetization plan, raises dividend and $2 B buybacks

MicroStrategy’s board approved a new Digital Credit Capital Framework that authorizes the sale of up to $1.25 billion of its Bitcoin holdings. Proceeds may be used to bolster a $2.55 billion USD reserve, fund preferred‑stock dividends and interest payments, and finance share‑repurchase programs. The framework also raises the annual dividend on the perpetual preferred security STRC from 11.5 % to 12 % and approves up to $1 billion for preferred‑stock buybacks and another $1 billion for common‑stock repurchases.

The company still holds roughly 847,000 BTC acquired at an average cost of about $75,600 per coin. The authorization marks a shift from the long‑standing “never sell Bitcoin” stance, giving the firm flexibility to monetize the asset when it is financially advantageous. The announcement came as the mNAV ratio fell below 1, prompting concerns about the sustainability of its previous raise‑and‑accumulate model. Following the filing, MSTR shares rose about 5 % in pre‑market trading while the STRC price recovered.

Analysts view the move as a de‑risking step that turns Bitcoin into a managed liquidity source rather than a purely ideological reserve. Bitcoin was trading near $60,000 at the time, and the potential $1.25 billion sale would represent roughly 2.5 % of the company’s total Bitcoin stash.