Key Takeaways:

  • MicroStrategy is establishing a $1.44 billion USD reserve.
  • The reserve aims to support dividend payments on preferred stock and interest on outstanding debt.
  • An additional purchase of 130 Bitcoin brings total holdings to 650,000 BTC.
  • The USD reserve is intended to navigate short-term market volatility.

MicroStrategy, a leading business analytics firm and the largest public holder of Bitcoin (BTC), has announced the establishment of a $1.44 billion US dollar reserve. This reserve is designed to support dividend payments on its preferred stock and interest payments on its outstanding debt. The reserve was funded through proceeds from the sale of Class A common stock under its at-the-market offering program.

“MicroStrategy’s current intention is to maintain a USD Reserve in an amount sufficient to fund at least twelve months of its dividends, and MicroStrategy intends to strengthen the USD Reserve over time, with the goal of ultimately covering 24 months or more of its dividends,” the company stated in a press release.

Concurrent with the launch of the reserve, MicroStrategy disclosed an additional purchase of 130 Bitcoin for $11.7 million, bringing its total holdings to a symbolic 650,000 BTC, acquired for $48.38 billion.

USD Reserve to Complement BTC Holdings

“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution,” said Michael Saylor, founder of MicroStrategy. He further added that the new financial tool will better position the company to navigate short-term market volatility.

MicroStrategy CEO and president Phong Le highlighted that the company’s latest BTC purchase — made in the past two weeks — brings its total holdings to 650,000 BTC, representing approximately 3.1% of the 21 million BTC that will ever exist.

“In recognition of the important role we play in the broader Bitcoin ecosystem, and to further reinforce our commitment to our credit investors and shareholders, we have established a USD Reserve that currently covers 21 months of dividends,” Le noted.

This move underscores MicroStrategy's long-term strategy with Bitcoin, with the creation of a USD reserve as an additional measure to ensure financial stability and resilience.


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