Strategy Boosts USD Reserve to Cover Over Two Years of Dividend Obligations
Strategy has increased its USD reserve to $2.2 billion, extending its financial runway to pay dividends and manage a potential bitcoin downturn. This boost in reserves was largely driven by selling stock, which added $748 million to the company's financial cushion.
The reserve is designated to cover preferred stock dividends totaling approximately $824 million annually across several stocks including STRK, STRC, STRF, STRD, and STRE. This enhanced financial buffer extends the company's runway beyond 2027 and into 2028, effectively covering dividend payments from 2026 through 2028 and aligning with the anticipated bitcoin halving event.
The first convertible note put date is set for September 2027, carrying a principal amount of $1 billion. These notes are structured to convert if the share price reaches or surpasses $183; if the share price falls below this threshold, cash repayment would be required. Currently, MSTR trades around $165 per share, which is approximately 12% below the $183 conversion threshold.
MSTR holds 671,268 BTC, providing significant liquidity flexibility that could facilitate cash settlement if necessary. Jeff Walton of Strive has described the USD reserve as a 'USD battery' that secures the September 2027 put and preserves dividend coverage. MSTR remains the largest bitcoin holder among publicly traded companies.
