Strategy (MSTR), the largest bitcoin holder among publicly traded companies, increased its dollar reserve to $2.2 billion, giving the company a two-and-a-half-year cushion to meet dividend obligations and the flexibility to navigate a potential “bitcoin winter” if BTC prices follow the conventional four-year market cycle.
The company sold shares to add $748 million to the reserve on Monday. This cash cushion alleviates short-term liquidity pressure and supports operations during periods of increased volatility.
The reserve is earmarked for preferred stock dividend payments totaling about $824 million a year, according to the company’s dashboard, in series STRK, STRC, STRF, STRD and STRE. The trail extends to the next bitcoin Halving, an event that reduces block rewards by 50% approximately every four years and will likely occur in April 2028.
The approximately 32 months of coverage supports uninterrupted payments through 2026, 2027 and 2028.
The first convertible bond sale date, at which bondholders can force Strategy to buy back their bonds, comes in September 2027, with capital of $1 billion. Based on MSTR’s track record of settling previous notes through share conversion, this would be the preferred option.
If the stock price stays below the conversion threshold of $183 per share, Strategy would have enough cash. It is currently trading near $165, about 12% below that level.
At or above the conversion price, the notes would be converted into shares, while prices below would require a cash repayment. Additionally, MSTR holds 671,268 BTC, offering greater flexibility as only a small portion of the holdings would be needed if a cash settlement were required.
Jeff Walton, Strive’s chief risk officer, underscored the importance of what he calls the company’s dollar battery, noting that the current reserve is enough to fully address the September 2027 convertible put option while leaving an additional 15 months of preferred dividend coverage.
MSTR stock is down about 45% so far this year, trading around $163 per share.
