PANews December 23 news, according to Coindesk, as the publicly traded company holding the most Bitcoin, Strategy (MSTR) has increased its dollar reserves to 2.2 billion dollars, ensuring dividend payments for the next two and a half years, and reducing financial pressure caused by the "crypto winter" that may be triggered by Bitcoin's four-year cycle.
The company increased its reserves by 748 million dollars through stock sales on Monday, and this cash buffer not only alleviates short-term liquidity pressure but also supports the company's operations during periods of high market volatility. The reserves are primarily used to pay preferred stock dividends, totaling approximately 824 million dollars per year, while also providing repayment assurance for the 1 billion dollar convertible bonds maturing in September 2027.
Currently, MSTR's stock price is approximately 163 dollars, which is about 12% lower than the 183 dollar conversion price of the convertible bonds. If the stock price does not reach the conversion price, the company will repay in cash; if it reaches or exceeds the conversion price, it will be settled in equity. In addition, MSTR holds 671,268 BTC, and only a small portion needs to be used to meet cash repayment needs.
The company’s Chief Risk Officer Jeff Walton stated that the current cash reserves are sufficient to cover the repayment of the convertible bonds due in September 2027, and additionally provide 15 months of preferred stock dividend payment assurance. Although MSTR's stock price has fallen by about 45% this year, the company has further solidified its financial health by enhancing cash reserves.
