Strategy, the company formerly known as MicroStrategy, just topped up its cash reserves by $100 million, bringing the total USD Reserve to $1 billion as of June 7. The move is designed to ensure the company can keep paying dividends on its growing stack of preferred stock obligations.
The company simultaneously disclosed a $101.3 million Bitcoin purchase, scooping up 1,550 BTC between June 1 and June 7. That brings its total Bitcoin war chest to 845,256 BTC, valued at roughly $63.97 billion.
The cash cushion and why it matters
Strategy’s USD Reserve is the dedicated pool of cash earmarked for dividend payments and debt interest across the company’s various preferred stock series. The company faces an estimated $1.7 billion in annual preferred dividend payments, meaning the $1 billion reserve represents about seven months of runway on that front alone.
The reserve had actually been drained to $871 million back on May 25. The reason? Strategy used the cash to fund a $1.5 billion repurchase of convertible notes, essentially paying down debt at the expense of its liquidity buffer.
