Strategy (MSTR) said Monday that it has adopted a framework that covers a board-approved USD reserve policy, increases preferred stock dividends, establishes repurchase programs for preferred and common shares, and sets up a Bitcoin monetization program.

Strategy said that its USD reserve may be used only to support the payment of dividends on preferred stock and interest on outstanding debt, and any other use requires authorization from the company's board.

The framework increases the regular dividend rate per annum on its variable rate series A perpetual stretch preferred stock to 12%, the company said, adding that it will establish a $1 billion repurchase program each for its outstanding digital credit securities and class A common stock.

The company's board has further authorized the company to sell bitcoins from time to time to fund its USD reserve, make preferred stock dividend and interest expense payments, and to repurchase its various securities, Strategy said.

Shares of the company were up 4.3% in Monday premarket activity.