Michael Saylor’s Strategy, recognized as the world’s largest public Bitcoin holder, is implementing a $1.44 billion US dollar reserve. This reserve is specifically designed to support dividend payments on its preferred stock and to cover interest on its outstanding debt.
Strategy officially announced the establishment of this US dollar reserve on Monday. The funding for this initiative comes from the proceeds generated through the sale of its Class A common stock, facilitated by its at-the-market offering program.
The company stated its current intention: “Strategy’s current intention is to maintain a USD Reserve in an amount sufficient to fund at least twelve months of its dividends, and Strategy intends to strengthen the USD Reserve over time, with the goal of ultimately covering 24 months or more of its dividends.”
In conjunction with the launch of this new reserve, Strategy also disclosed a recent acquisition of 130 Bitcoin (BTC). This purchase amounted to $11.7 million and brings the company's total Bitcoin holdings to a symbolic value of 650,000 BTC. The total cost for these holdings stands at $48.38 billion.
USD Reserve to Complement Bitcoin Holdings
Michael Saylor, the founder of Strategy, commented on the new financial strategy. He stated, “Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution.” Saylor further explained that this new financial tool is expected to better position the company to navigate short-term market volatility.
Phong Le, Strategy's CEO and president, provided further details on the company's recent activities. He highlighted that the company’s latest Bitcoin purchase, which occurred within the past two weeks, has increased its total holdings to 650,000 BTC. This amount represents approximately 3.1% of the total 21 million Bitcoin that will ever be available.
Le also emphasized the significance of this move for the company's stakeholders. He noted, “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.”