Michael Saylor’s Strategy, the world’s largest public Bitcoin holder, is creating a $1.44 billion US dollar reserve to support dividend payments on its preferred stock and interest on its outstanding debt.
Strategy on Monday announced the establishment of a US dollar reserve funded through proceeds from the sale of Class A common stock under its at-the-market offering program.
“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,” the company said.
Alongside the launch of the reserve, Strategy disclosed an additional purchase of 130 Bitcoin (BTC) for $11.7 million, bringing its total holdings to a symbolic value 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 next step in our evolution,” Strategy founder Saylor said, adding that the new financial tool will better position the company to navigate short-term market volatility.
Strategy CEO and president Phong Le highlighted that the company’s latest BTC purchase — made in the past two weeks — brings its total holdings to 650,000 BTC, or about 3.1% of the 21 million BTC that will ever exist.
“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,” Le noted.
Magazine: Saylor denies Bitcoin sell-off, XRP ETF debut tops chart: Hodler’s Digest, Nov. 9 – 15