Strategy has funded a new cash reserve of $1.44 billion derived from sales of common stock designed to ensure dividend payments for at least the next 12 months. Amid ongoing market instability, the company has also increased its Bitcoin reserves to 650,000 coins.
The firm announced this development on Monday through a formal notification, shedding light on the funding sourced from the sale of Class A common stock.
“Strategy’s current aim is to maintain a USD Reserve sufficient to cover at least twelve months of its dividends. We intend to gradually increase this reserve, ultimately covering at least 24 months or more of dividends,” the company stated.
Additionally, Strategy disclosed a recent acquisition of 130 BTC amounting to $11.7 million. This brings its total Bitcoin holdings to a notable value of 650,000 BTC, acquired at a cost of $48.38 billion.
Primary Funding for Dividends
The newly established USD reserve will serve as a vital resource to finance dividends for preferred stockholders, debt, and common equity. The updating provided insights into how this $1.44 billion reserve constitutes 2.2% of the firm’s enterprise value, 2.8% of equity value, and 2.4% of Bitcoin value.
Strategy’s funding of the USD Reserve. Source: Strategy
“We believe this enhances the appeal and quality of our preferred stocks, debt, and common equity,” was noted in the company’s statement, which highlighted raising $1.44 billion in a short span of nine trading days through the sale of its common stock MSTR.
USD Reserve to Complement BTC Holdings
According to the founder, Saylor remarked:
“Creating a USD Reserve to add to our BTC holdings represents a significant step in our business evolution. This new financial measure empowers us to better manage short-term market fluctuations.”
CEO Phong Le emphasized that their recent Bitcoin purchase has bolstered their total assets to 650,000 BTC, approximately 3.1% of the limited 21 million BTC that will ever be mined.
An excerpt from Strategy’s Form 8-K. Source: SEC
“Acknowledging our vital role in the broader Bitcoin framework, we’ve created a USD Reserve that currently safeguards 21 months’ worth of dividends,” Le underlined.
This development coincides with a reevaluation of their 2025 KPI targets, where the company now anticipates BTC yield to finish the year within 22% to 26%, estimating Bitcoin prices at $85,000 to $110,000 by December 31.
Revised assumptions and results for 2025. Source: Strategy
This revised target aims for operating income between $7 billion and $9.5 billion, a decrease from earlier ambitions of $34 billion.
For related information, refer to further articles discussing Strategy’s plans and projections.
