Strategy Builds $1.44 Billion USD Reserve for Dividends
Strategy, a Bitcoin treasury and financial intelligence firm formerly known as MicroStrategy, has set up a $1.44 billion US Dollar reserve. This fund will help the company pay dividends on preferred stock and interest on its debt. The reserve was created using proceeds from Strategy’s at-the-market stock offering program.
The company said the reserve will cover dividend and interest payments for at least 12 months. Strategy plans to grow it further to cover up to 24 months in the future. The company may adjust the reserve based on market conditions and liquidity needs.
Strategy Buys Additional 130 Bitcoins
Between November 17 and November 30, Strategy bought 130 Bitcoin (BTC) for about $11.7 million. The average Bitcoin price for this purchase was around $89,960 each. After this latest buy, Strategy owns a total of 650,000 BTC. This is worth roughly $55 billion at current prices.
The company’s total cost for all Bitcoin it holds is about $48.4 billion. This means the average purchase price for each BTC is $74,436, including fees. The recent purchase happened even as Bitcoin’s price dropped 7% from $90,000 to $84,500 on Monday.
Market Reaction to Strategy’s Moves
- Strategy’s stock (MSTR) fell 6% on Monday.
- The drop followed declines in cryptocurrencies and crypto-related stocks.
The purchase and reserve announcement were made official in an 8-K filing with the US Securities and Exchange Commission (SEC) on Monday. You can view the filing here.
