Breaking news reported
Strategy Company has increased its Bitcoin holdings to 650,000 Bitcoins after the price of the currency fell below $85,000.
Michael Saylor, the founder of the company and its former CEO, revealed two key steps in an announcement made today.
The first step was to purchase a new batch of Bitcoin, raising the company's total share to this record level.
The second step involved creating a cash reserve in US dollars valued at $1.44 billion to support dividends on preferred shares, in addition to covering interest on existing debts.
This reserve was funded by the proceeds from the sale of class 'A' ordinary shares within the offering program in the market.
The company plans to maintain this reserve sufficiently to cover at least a full year's obligations while gradually increasing it to last up to two years.
Saylor explained that building a cash reserve alongside a Bitcoin reserve is a new step in the company's journey, enhancing its ability to face short-term market fluctuations while continuing to execute its vision of becoming the leading global issuer of digital credit.
It also disclosed an additional acquisition of 130 Bitcoins valued at $11.7 million, with an average price of $89,960 per unit, raising the company's holdings to 650,000 Bitcoins, which is approximately 3.1% of the total global supply of this currency.
This announcement coincided with a wide selling wave in the cryptocurrency markets.
After surpassing the $91,000 mark yesterday, Bitcoin has dropped today to $85,500, touching a level of $84,500 before rising again to around $87,000.
Source of the news: Bitcoin Arab
