Saylor’s Strategy Builds $1.44B ‘Cash Moat’ to Protect Dividends, Cuts Bitcoin Outlook

• Cash reserve is intended to support dividend payments on the company’s preferred stock and cover interest on its outstanding debt
• Fund is meant to pay out dividends for at least a full year, with a goal to grow it enough to cover two years or more
• Strategy also bought more Bitcoin, adding about 130 coins at a price of roughly $89,860 each, bringing its total Bitcoin holdings up to 650,000

Strategy (formerly MicroStrategy) effectively decoupled its shareholder payouts from Bitcoin’s volatility since December start, establishing a $1.44 billion USD reserve to service its growing debt and preferred stock obligations.

The ‘Stability’ Reserve

The reserve was funded via proceeds from the sale of Class A common shares under Strategy’s at-the-market offering program. According to management, the fund is meant to pay out dividends for at least a full year. 

The go…

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