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

PANews, December 23 – According to Coindesk, as the publicly listed company holding the most bitcoin, Strategy (MSTR) has increased its US dollar reserves to $2.2 billion to secure dividend payments for the next two and a half years and reduce financial pressure from a potential "crypto winter" triggered by bitcoin's four-year cycle.

The company increased its reserves by $748 million through a stock sale on Monday. This cash buffer not only alleviates short-term liquidity pressure but also supports the company's operations during periods of high market volatility. The reserve is mainly used to pay preferred stock dividends, totaling about $824 million annually, and also provides repayment security for the $1 billion convertible bonds due in September 2027.

Currently, MSTR's share price is around $163, about 12% lower than the $183 conversion price of the convertible bonds. If the share price does not reach the conversion price, the company will repay in cash; if it reaches or exceeds the conversion price, settlement will be in equity. In addition, MSTR holds 671,268 BTC, and only a small portion would need to be used to meet cash repayment requirements.

The company's Chief Risk Officer, Jeff Walton, stated that the current cash reserves are sufficient to cover the repayment of the convertible bonds due in September 2027 and provide an additional 15 months of preferred stock dividend payment security. Although MSTR's share price has fallen by about 45% this year, the company has further strengthened its financial health by increasing its cash reserves.

Previous news: Last week, global listed companies made a net purchase of $26.35 million in BTC, with Strategy not increasing its holdings.