Strategy has increased its dollar reserves to $2.2 billion to secure dividend payments for the next two and a half years.

Strategy (MSTR), the publicly traded company holding the largest amount of Bitcoin, has increased its dollar reserves to $2.2 billion, securing dividend payments for the next two and a half years and mitigating financial pressure from a potential "crypto winter" triggered by Bitcoin's four-year cycle. The company added $748 million to its reserves through Monday's stock sale. This cash buffer not only alleviates short-term liquidity pressures but also supports the company's operations during periods of high market volatility. The reserves will primarily be used to pay preferred stock dividends, totaling approximately $824 million annually, while also providing repayment security for $1 billion in convertible bonds maturing in September 2027. Currently, MSTR's share price is around $163, about 12% lower than the convertible bond conversion price of $183. If the share price falls below the conversion price, the company will repay in cash; if it reaches or exceeds the conversion price, it will be settled in equity. Furthermore, MSTR holds 671,268 BTC, requiring only a small portion to meet its cash repayment needs. MSTR's Chief Risk Officer, Jeff Walton, stated that current cash reserves are sufficient to cover convertible bond repayments in September 2027 and provide an additional 15 months of preferred stock dividend payment guarantees. Despite a year-to-date share price decline of approximately 45%, the company has further solidified its financial health by strengthening its cash reserves. (CoinDesk)