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Strategy launches a digital credit capital framework, establishes a BTC monetization plan, and two $1 billion repurchase plans

According to the 8-K document submitted to the SEC by Strategy, the company announced the launch of a digital credit capital framework, which includes five core components: dollar reserve policy, adjustment of STRC dividend policy, preferred stock repurchase plan, common stock repurchase plan, and BTC monetization plan.Under the dollar reserve policy, the reserve can only be used to pay preferred stock dividends and debt interest, and management must maintain a reserve sufficient to cover expected dividends and interest expenses for at least the next 12 months. As of June 28, the dollar reserve balance was $2.55 billion.Regarding the STRC dividend, the company will dynamically assess the dividend rate on a monthly basis, considering factors such as trading price, market yield, credit spread, and Bitcoin price volatility, and will not increase the dividend solely because the STRC trading price is below par value. The company also announced an increase in the annualized dividend rate for STRC to 12% from the previous level, effective July 1.In terms of the repurchase plan, the company has established two repurchase authorizations of $1 billion each, to repurchase preferred stocks such as STRC, STRF, STRD, STRK, and Class A common stock, with STRC being the primary target of the preferred stock repurchase plan. Neither of the repurchase plans will utilize dollar reserve funds.In addition, the company's board of directors has authorized the BTC monetization plan, allowing the company to raise up to $1.25 billion by selling Bitcoin, to supplement the dollar reserve, pay preferred stock dividends and interest expenses, or fund the aforementioned repurchase plans.

JPMorgan: SpaceX's inclusion in the Nasdaq 100 index could bring in $4.3 billion in passive fund inflows

According to Reuters, Nasdaq has confirmed that SpaceX (SPCX) will be included in the Nasdaq 100 Index on July 7, which may bring a wave of passive fund buying for the stock. Inclusion in the index typically boosts stock prices, as ETFs that track the performance of the relevant index need to purchase shares of newly included companies. JPMorgan expects that SpaceX's inclusion in the Nasdaq 100 Index could bring in $4.3 billion in passive fund inflows.SpaceX went public on Nasdaq on June 12. To attract more companies to list in the U.S., Nasdaq and index providers such as FTSE Russell and MSCI have previously relaxed some inclusion requirements, including profitability, days since listing, and the number of tradable shares. SpaceX has fluctuated between significant losses and small profits over the past three years, with a net loss of $4.9 billion last year.Michael Field, Chief Equity Market Strategist at Morningstar, stated, "Clearly, there is strong market demand, which is why they are quickly including it in the index." He added that many people will be satisfied with this, but some fund managers and skeptics may not agree, as Morningstar believes the stock is overvalued. Investors typically gain broader market exposure through funds that track the Nasdaq 100 Index, such as Invesco's QQQ and QQQM. Additionally, large language model companies like OpenAI and Anthropic are also expected to submit IPO applications this year or next and may seek valuations exceeding $1 trillion.However, S&P Global stated this month that it will not adjust the requirements for SpaceX to enter major indices like the S&P 500 and will consider including it in relevant indices only after at least 12 months.
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