Strategy boosts its balance sheet after purchasing nearly 2 billion worth of BTC recently. Under the leadership of Michael Saylor, the company has increased its dollar reserves to $2.2 billion, providing over two and a half years of visibility to meet its dividend commitments. A defensive move, prepared to weather a potential “bitcoin winter” if the market follows its typical four-year cycle.
This increase in available cash was made possible by a new sale of shares, adding $748 million to the treasury. A significant strengthening that reduces short-term liquidity pressure and enhances Strategy’s ability to absorb BTC volatility.
Strategy Increases Cash Reserves Instead of Buying Bitcoin
According to the company’s data, the current reserve is dedicated primarily to dividend payments on various preferred stock issuances, totaling approximately $824 million annually. The STRK, STRC, STRF, STRD, and STRE series are all included.
With nearly 32 months of coverage, Strategy can ensure uninterrupted payments through 2026, 2027, and up to 2028. An outlook that extends beyond the next bitcoin halving, expected around April 2028, when the block reward will be halved again. Historically, these events mark major inflection points in price cycles, often preceded by periods of revenue strain related to mining and the entire ecosystem.
The 2027 Debt Wall under Control
Beyond dividends, this strengthening of the “dollar buffer” gives Strategy strategic maneuverability regarding its debt. The initial put on a $1 billion convertible bond will come due in September 2027, when bondholders can demand repayment.
In the company’s preferred scenario, these bonds would be converted into shares, as in previous issuances. But if MSTR’s price remains below the $183 per share conversion threshold, a cash repayment would be required. At this stage, with a stock trading around $165, the company theoretically has enough liquidity to honor this obligation without compromising its dividends.
Jeff Walton, chief risk officer at Strive, refers to it as a veritable “USD battery“. According to him, even after fully repaying the 2027 put, Strategy would still retain approximately 15 months of capacity to pay its preferred dividends.
Bitcoin as the Ultimate Safety Net
In the background, Strategy holds a significant asset: its 671,268 BTC reserve, making it the largest bitcoin holder among listed companies. In an extreme scenario, only a fraction of these holdings would be needed to cover a cash shortfall, but it would also be a disaster for the company’s image and Saylor, who advocates ‘never sell.’
Granted, the market continues to punish the stock, down about 45% since the start of the year. But by bolstering its dollar position, Strategy sends a clear message: financial resilience is now the priority. As the next halving approaches, the company gives itself the time and flexibility needed to await the bitcoin cycle to once again play in its favor.
