Strategy's increased dollar buffer covers more than 2 years of dividend obligations
Strategy (MSTR) increased its USD reserve to $2.2 billion, providing over two years of coverage for dividend obligations and debt maturities.Summary
Strategy (MSTR), the largest publicly traded Bitcoin holder, has increased its dollar reserve to $2.2 billion, creating a buffer runway extending beyond 2027, which covers more than two and a half years of preferred stock dividend payments.
This significant cash cushion, bolstered by a recent $748 million stock sale, is intended to support operations through potential volatility, such as a 'bitcoin winter,' and covers dividend obligations through 2026, 2027, and into 2028, aligning with the next expected Bitcoin halving around April 2028.
The reserve also addresses near-term refinancing risk; the first convertible note put date is September 2027 for $1 billion. MSTR has sufficient cash to cover this if bondholders force a repurchase, as the current share price ($165) is below the $183 conversion threshold. Furthermore, MSTR holds 671,268 BTC, offering additional flexibility for cash settlement if necessary.
(Source：CoinDesk)