Michael Saylor's Strategy company has increased its cash reserves to $2.19 billion and has suspended Bitcoin purchases. Two weeks ago, the company spent $2 billion to acquire this cryptocurrency, and its total Bitcoin holdings have now grown to approximately $60 billion.
The company, located in Tysons Corner, raised $748 million before December 21 by issuing common stock. Earlier, the company also set up a $1.4 billion reserve for future dividend and interest payments.
Since the beginning of October, the price of Bitcoin has fallen by about 30%, while Strategy's stock price has dropped by more than 50%. TD Cowen analyst Lance Vitanza pointed out that the company's software business revenue cannot fully cover its annual dividend and interest payment obligations of $824 million.
