BlockBeats News, June 29th, Today Strategy launched the "Digital Credit Capital Framework," establishing a BTC liquidity plan and two $1 billion buyback programs. Under this plan, the board has authorized Strategy to sell Bitcoin from time to time for the following three primary purposes:

Supplement US Dollar Reserves: Generating up to an additional $1.25 billion in revenue to bolster USD reserves (current reserve balance is around $25.5 billion, including some ATM sales receivables).

Pay Preferred Stock Dividends and Interest: Using proceeds from BTC sales to pay dividends/interest when it is more economical than issuing new shares or other forms of financing, or to replenish reserves after payment.

Support Buybacks: Providing funds for the aforementioned preferred and common stock buyback programs (including associated taxes and transaction costs).

Significant limitations exist under the above three scenarios, and any sales beyond these purposes or amounts will require additional board authorization. Additionally, this plan has no fixed expiration date, does not mandate the sale of any Bitcoin, and the company reserves the right to modify, suspend, or terminate it at any time.

BlockBeats believes that this plan is, in fact, an authorization mechanism, similar to giving management a toolbox to liquidate Bitcoin when needed (to pay high-priority stock dividends, replenish reserves, repurchase shares to support stock price). In the context of a crypto bear market, this is a flexible liquidity management strategy that Strategy has no choice but to adopt, but the core of Strategy's strategy remains in holding Bitcoin long term and using financial instruments to leverage exposure.