Strategy's Cash Reserves Rise to $3.75 Billion, Covering Preferred Stock Dividends for Over Two Years
Alina Collins
Strategy raised its cash reserves to $3.75 billion by selling common stock, enough to cover preferred-share dividends for over two years; the company left its Bitcoin holdings untouched, and both MSTR and STRC rose about 2.5% pre-market.
Where did the $3.75 billion come from?
The company sold over 5.4 million common shares last week, raising a total of $544.5 million as disclosed in SEC filings.
This means → Strategy chose to dilute equity rather than sell Bitcoin to build its war chest — shareholders bore the funding cost; the Bitcoin position stayed intact.
How long can the cash last?
Executive Chairman Michael Saylor said $3.75 billion is enough to cover preferred-stock dividends for more than two years.
Of that, $25 million went toward buying back 288,930 shares of the high-yield preferred stock STRC.
In plain terms = the company has more than enough to keep paying dividends on time, and it can still buy back some preferred shares to shrink future payout obligations.
Did the Bitcoin position change?
The company made no adjustments to its Bitcoin holdings during this round of fundraising; it currently holds 843,775 BTC.
MSTR and STRC both rose about 2.5% pre-market after Bitcoin climbed above $65,000 over the weekend.
This reflects a market that reads "raised cash but didn't sell any coins" as a confidence signal from management on Bitcoin's price.
Content is for reference only, not financial advice.