MicroStrategy Builds $1.44 Billion Cash Wall Amid Rising Market Fear | US Crypto News
MicroStrategy established a $1.44 billion USD reserve, increasing its BTC holdings to 650,000 amid market fear and revealing a potential Bitcoin sale trigger.Summary
MicroStrategy (now Strategy Inc.) announced the establishment of a $1.44 billion USD Reserve, intended to cover dividends and interest for up to 21 months. Concurrently, Chair Michael Saylor confirmed the company acquired an additional 130 BTC, bringing its total holdings to 650,000 BTC, or about 3.1% of all Bitcoin that will ever exist. This move comes as market fear rises and follows previous cryptic comments by Saylor, which were later clarified to relate to this USD reserve, not an immediate BTC sale. However, CEO Phong Le confirmed a 'kill switch' scenario where MicroStrategy might sell Bitcoin: if its stock trades below 1.0x mNAV (market Net Asset Value) and the firm cannot raise capital. While mNAV is currently above the 0.9x danger zone, the admission of this condition, coupled with the large cash reserve, signals a shift from Saylor's previous 'never sell' stance, making Bitcoin's near-term price action crucial for the company's strategy.
(Source：BeInCrypto)