Saylor’s Strategy Builds $1.44B Cash Reserve as Bitcoin Holdings Hit 650,000

• Michael Saylor’s Strategy established a $1.44 billion US dollar reserve, funded by selling Class A common stock, to cover at least 21 months of dividends on preferred stock and outstanding debt interest.
• The reserve is intended to complement its Bitcoin holdings, reassure creditors and shareholders, and help the company manage short-term market volatility.
• Strategy simultaneously doubled down on its Bitcoin holdings, disclosing a purchase of 130 BTC, bringing its total stash to 650,000 BTC, representing roughly 3.1% of Bitcoin’s total supply.

Michael Saylor’s Strategy is creating a US$1.44 billion (AU$2.20 billion) reserve to help fund dividends on its preferred stock and interest on outstanding debt, while continuing to grow its Bitcoin holdings.

The company said the reserve is funded through sales of Class A common stock under its at-the-market offering program. It also stated that the goal is to keep enough cash to cover at least 12 months of dividends and ultimately extend that to 24 months or more. 

The reserve currently covers about 21 months of dividend payments and will serve as the primary source for future dividends and debt service.

This comes as the company recently doubled down on Bitcoin with a new US$50 million purchase (AU$77.4 million), despite investors’ concerns and MSTR stock falling about 50% from its peak.

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Strategy Builds US$1.44 Billion Cash Reserve

The reserve represents about 2.2% of Strategy’s enterprise value, 2.8% of its equity value and 2.4% of the value of its Bitcoin holdings, according to a company update. Strategy said it raised the US$1.44 billion (AU$2.20 billion) in less than nine trading days by selling MSTR shares.

Alongside the announcement, Strategy disclosed it bought another 130 Bitcoin for US$11.7 million (AU$17.90 million), bringing its total to 650,000 BTC. The company says it has spent US$48.38 billion (AU$74.02 billion) acquiring that stash, which it estimates is roughly 3.1% of Bitcoin’s eventual 21 million-coin supply.

Saylor called the creation of a US dollar reserve a complement to Strategy’s Bitcoin reserve that is intended to help the company manage short-term market volatility and reassure creditors and shareholders. 

CEO Phong Le said the move reflects the firm’s role in the broader Bitcoin ecosystem and is designed to strengthen the position of its preferred stock, debt and common equity.

Strategy now holds 650,000 bitcoin, about 3.1% of the 21 million bitcoin that will ever exist.  In recognition of the important role we play in the broader Bitcoin ecosystem, and to further reinforce our commitment to our credit investors and shareholders, we have established a USD Reserve that currently covers 21 months of Dividends. We  intend to use this reserve to pay our Dividends and grow it over time.

Phong Le, President and CEO of Strategy.

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