Strategy raises USD reserve to $3B, extends dividend cover
On July 13, Strategy Inc. increased its U.S. dollar reserve by $450 million to $3 billion, extending preferred dividend coverage to 20.4 months.
Strategy Inc. (Nasdaq: MSTR) reported on July 13 that it increased its U.S. dollar reserve by $450 million to $3 billion, extending its preferred dividend coverage to 20.4 months. The company also disclosed a treasury holding of 843,775 bitcoin and $1.763 billion in annual dividend obligations.
The company said the expanded cash cushion is intended to support distributions on its preferred securities and to cover near-term interest payments. Management framed the reserve as immediate dollar coverage for recurring obligations while other capital tools stand ready to restore liquidity over time.
Strategy created the USD Reserve to back preferred-stock dividends and interest on outstanding debt. The fund was initially built using proceeds from common-stock sales under an at-the-market program. Company officials said the reserve level can be increased or reduced based on liquidity needs, market conditions and financing opportunities.
Under the company’s Digital Credit Capital Framework, bitcoin is maintained as a long-term treasury asset and also considered a potential source of cash through sales or financing when management determines such actions fit its capital-allocation objectives. Strategy listed common-equity issuance, preferred-financing transactions and other capital-market activity as additional means to replenish dollar liquidity.
Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, described the model as a shift toward using bitcoin as collateral for preferred securities rather than strictly accumulating coins. Kendrick projected a $100,000 end-2026 bitcoin price, which he said would imply roughly 56% upside from the roughly $64,000 level at the time of his update.
Future filings and reserve updates will show how changes in the annual dividend rate, preferred issuance and other capital actions affect the reported coverage period. Bitcoin price movements will also influence Strategy’s broader financial capacity while the USD Reserve provides immediate funding for recurring obligations.
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