Strategy (MSTR), the biggest bitcoin holder among publicly traded companies, increased its dollar reserve to $2.2 billion, giving the company a two-and-a-half-year buffer to meet its dividend obligations and the flexibility to weather a potential “bitcoin winter” if BTC prices follow the conventional four-year market cycle.
The company sold shares on Monday to add $748 million to the reserve. This cash cushion alleviates pressure on short-term liquidity and supports operations during periods of increased volatility.
The reserve is intended to pay preferred stock dividends totaling some $824 million annually, according to the company’s dashboard, for series STRK, STRC, STRF, STRD and STRE. The trail extends to the next bitcoin Halving, an event that reduces block rewards by approximately 50% every four years and is next expected to occur in April 2028.
The coverage of approximately 32 months allows uninterrupted payments until 2026, 2027 and until 2028.
The first convertible bond sale date, at which bondholders will be able to force Strategy to repurchase their bonds, comes in September 2027, with a principal of $1 billion. Based on MSTR’s history of settling prior notes through stock conversion, this option would be preferred.
If the stock price remains below the conversion threshold of $183 per share, Strategy would have sufficient liquidity. It’s currently trading near $165, about 12% below that level.
At or above the conversion price, the notes would be converted into shares, while lower prices would require redemption in cash. Additionally, MSTR holds 671,268 BTC, providing additional flexibility as only a small portion of the holdings would be needed if cash settlement was required.
Jeff Walton, chief risk officer at Strive, highlighted the importance of what he calls the company’s U.S. dollar stack, noting that the current reserve is sufficient to fully meet the September 2027 convertible put option while leaving an additional 15 months of preferred dividend coverage.
MSTR shares are down about 45% year to date, trading near $163 per share.
