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 major steps in an announcement made today.
The first step was purchasing 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 worth $1.44 billion to support dividend distributions on preferred shares, as well as to cover interest on existing debts.
This reserve was funded from the proceeds of selling Class A common shares under the market offering program.
The company plans to maintain this reserve at a level sufficient to cover obligations for at least one full year, while aiming to gradually increase it to last for 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 cope with short-term market fluctuations while continuing to execute its vision to become the leading global issuer of digital credit.
It 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, which is approximately 3.1% of the total global supply of this currency.
This announcement coincided with a widespread sell-off in the cryptocurrency markets.
After Bitcoin's price surpassed $91,000 yesterday, it fell today to $85,500, and touched a level of $84,500 before rising again to around $87,000.
