Companies
Strategy Establishes $6.69 Billion USD Liquidity Reserve for Bitcoin Purchases
Strategy, formerly known as MicroStrategy, has announced the establishment of a $6.69 billion USD liquidity reserve, aimed at facilitating future Bitcoin purchases and ensuring the company can meet its financial obligations. This reserve comprises a $5.1 billion USD Reserve dedicated to preferred stock dividends and debt interest payments, alongside a newly created $1.59 billion USD Cash pool for general corporate use.
The company’s recent capital raise, which involved the sale of approximately 18.26 million shares of MSTR common stock, generated around $2 billion. This funding has been allocated to bolster the liquidity reserve, repurchase preferred shares, and enhance corporate flexibility without tapping into the restricted reserve.
As of August 23, 2026, the liquidity is projected to cover about 47 months of preferred dividends and interest payments, based on current spending rates. Strategy's President and CEO, Phong Le, has emphasized the company's commitment to remaining a long-term buyer of Bitcoin, despite not having made any purchases since June.
Currently, Strategy holds approximately 840,447 BTC, making it the largest corporate holder of Bitcoin, valued at about $66.4 billion at recent prices. The company aims to utilize its liquidity for various purposes, including potential acquisitions and share repurchases, while adhering to its Digital Credit Capital Framework that governs its USD Reserve policy.
FAQ
What is the purpose of Strategy's $6.69 billion liquidity reserve?
The liquidity reserve is aimed at facilitating future Bitcoin purchases and ensuring the company can meet its financial obligations, including preferred stock dividends and debt interest payments.
How is the $6.69 billion liquidity reserve structured?
The reserve comprises a $5.1 billion USD Reserve dedicated to preferred stock dividends and debt interest payments, and a newly created $1.59 billion USD Cash pool for general corporate use.
What recent actions did Strategy take to bolster its liquidity reserve?
Strategy raised approximately $2 billion by selling about 18.26 million shares of MSTR common stock, which has been allocated to enhance the liquidity reserve, repurchase preferred shares, and improve corporate flexibility.
How long is the liquidity projected to last for preferred dividends and interest payments?
As of August 23, 2026, the liquidity is projected to cover about 47 months of preferred dividends and interest payments based on current spending rates.
What is Strategy's stance on Bitcoin purchases moving forward?
Despite not having made any purchases since June, Strategy's President and CEO, Phong Le, emphasized the company's commitment to remaining a long-term buyer of Bitcoin.