According to 528btc, Strategy Inc. has established a $1.44 billion reserve to stabilize its capital structure and ensure the sustainability of preferred stock dividends. The reserve, announced on December 3, 2025, is designed to cover at least 21 months of dividend and interest payments, while acting as a buffer against Bitcoin's price volatility. The company plans to use proceeds from equity issuance, particularly Class A common stock, to fund the reserve, avoiding the need to liquidate Bitcoin holdings during market downturns. The strategy aligns with the company’s updated 2025 financial guidance, which assumes a Bitcoin price range of $85,000 to $110,000 by year-end. Critics, however, question the effectiveness of the reserve in mitigating systemic risks, citing a declining mNAV ratio and concerns over potential forced Bitcoin sales to meet debt obligations.
Strategy Inc. Sets $1.44 Billion Reserve to Mitigate Bitcoin Volatility and Secure Dividend Sustainability
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