Strategy (MSTR), the largest Bitcoin As a holder of a public company, increasing its USD reserves to $2.2 billion gives the company a two-and-a-half-year buffer to meet dividend obligations and flexibility to weather a potential “Bitcoin Winter” if BTC prices follow the traditional four-year market cycle.
The company sold shares on Monday, adding $748 million to its reserves. This cash buffer relieves short-term liquidity pressures and supports operations during periods of heightened volatility.
The reserve is earmarked for preferred stock dividend payments totaling approximately $824 million annually across the STRK, STRC, STRF, STRD and STRE series, according to the company’s dashboard. The runway extends to the next Bitcoin Halvings, which cut block rewards by 50% approximately every four years, will likely happen next in April 2028.
The coverage period of approximately 32 months supports uninterrupted payments in 2026, 2027 and 2028.
The first convertible notes sale date will come in September 2027, at which time bondholders may force Strategy to repurchase its bonds for $1 billion in principal. Based on MSTR’s history of settling previous notes through share conversion, this would be the preferred option.
If the stock price stays below the $183 per share conversion threshold, Strategy will have plenty of cash. It is currently trading near $165, about 12% below that level.
At or above the conversion price, the notes will convert to equity, while below the conversion price, cash repayment will be required. Additionally, MSTR holds 671,268 BTC, providing greater flexibility as only a small portion needs to be held if cash settlement is required.
Strive chief risk officer Jeff Walton emphasized what he said was the importance of the company’s dollar battery, noting that current reserves are sufficient to fully cover the convertible put options through September 2027 while still leaving an additional 15 months of preferred dividend coverage.
MSTR shares are down about 45% year to date, trading near $163 per share.
