The "Strategy" company increases its Bitcoin holdings and establishes a cash reserve worth $1.44 billion: details
The Strategy company has boosted its Bitcoin holdings to reach 650,000 bitcoins after the price of the currency dropped below $85,000.
Michael Saylor, the founder of the company and its former CEO, revealed two key steps in a statement released today.
The first step was to purchase a new batch of Bitcoins, raising the company's overall stake 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 selling Class A common shares under the market offering program.
The company plans to maintain this reserve sufficiently to cover at least one year's obligations, while seeking to gradually increase it to be enough for a period of 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.
He also revealed an additional acquisition of 130 Bitcoins worth $11.7 million, with an average price of $89,960 per unit, raising the company's holdings to 650,000 Bitcoins, equivalent to about 3.1% of the total global supply of this currency.
This announcement coincided with a broad sell-off in the cryptocurrency markets.
After Bitcoin's price surpassed $91,000 yesterday, it dropped today to $85,500, touching a level of $84,500 before rising again to around $87,000.
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