Strategy Publishes Bitcoin Sales Authorization Framework, Allowing BTC Sales in Only Three Scenarios

Odaily Strategy has officially released the "Digital Credit Capital Framework," introducing a Bitcoin liquidation authorization mechanism, alongside a share repurchase plan with a cap of $1 billion.

The company's board of directors has designated three compliant scenarios for selling Bitcoin: First, to supplement U.S. dollar reserves, allowing for an increase of up to $1.25 billion in cash, with current dollar reserves standing at approximately $2.555 billion. Second, when it is more cost-effective than issuing new equity financing, selling BTC to pay preferred stock dividends and interest. Third, to fund common stock and preferred stock repurchase programs, covering transaction fees and taxes.

Any Bitcoin sales exceeding the aforementioned purposes and limits must receive additional approval from the board of directors. The framework has no fixed expiration date and no mandatory selling requirements; the company can adjust or suspend it at any time.

Industry analysis indicates that this framework serves as a liquidity management tool for bear markets, designed to address issues such as dividend payments and stock price pressure. It is intended only as a short-term, flexible adjustment mechanism. Strategy's core strategy of long-term Bitcoin accumulation and leveraging financial instruments to amplify Bitcoin exposure remains unchanged.