Strategy sets up $1.4B cash reserve, lifts Bitcoin stash to 650,000 BTC

Michael Saylor’s Strategy, the world’s largest nationalist Bitcoin holder, is creating a $1.44 cardinal US dollar reserve to enactment dividend payments connected its preferred banal and involvement connected its outstanding debt.

Strategy connected Monday announced the constitution of a US dollar reserve funded done proceeds from the merchantability of Class A communal banal nether its at-the-market offering program.

“Strategy’s existent volition is to support a USD Reserve successful an magnitude capable to money astatine slightest 12 months of its dividends, and Strategy intends to fortify the USD Reserve implicit time, with the extremity of yet covering 24 months oregon much of its dividends,” the institution said.

Alongside the motorboat of the reserve, Strategy disclosed an further acquisition of 130 Bitcoin (BTC) for $11.7 million, bringing its full holdings to a symbolic worth of 650,000 BTC, acquired for $48.38 billion.

USD Reserve to complement BTC holdings

“Establishing a USD Reserve to complement our BTC Reserve marks the adjacent measurement successful our evolution,” Strategy laminitis Saylor said, adding that the caller fiscal instrumentality volition amended presumption the institution to navigate short-term marketplace volatility.

Strategy CEO and president Phong Le highlighted that the company’s latest BTC acquisition — made successful the past 2 weeks — brings its full holdings to 650,000 BTC, oregon astir 3.1% of the 21 cardinal BTC that volition ever exist.

An excerpt from Strategy’s Form 8-K. Source: SEC

“In designation of the important relation we play successful the broader Bitcoin ecosystem, and to further reenforce our committedness to our recognition investors and shareholders, we person established a USD Reserve that presently covers 21 months of dividends,” Le noted.

Magazine: Saylor denies Bitcoin sell-off, XRP ETF debut tops chart: Hodler’s Digest, Nov. 9 – 15