Strategy, the company formerly known as MicroStrategy and the largest publicly traded corporate holder of Bitcoin, just did something it swore it would never do. It approved selling Bitcoin.
The board authorized a new “Digital Credit Capital Framework” on June 29 that allows the company to sell up to $1.25 billion worth of BTC. The goal is to boost its USD reserves from $2.55 billion to roughly $3.8 billion, giving it enough runway to cover preferred dividends and interest obligations for about 25.9 months.
The numbers behind the pivot
Strategy currently holds 847,363 BTC. The authorized sales represent approximately 1.5% of that stash, which sounds modest until you remember that 1.5% equals $1.25 billion.
The company’s annual dividend and interest obligations total approximately $1.76 billion. Under its existing $2.55 billion reserves, that translates to roughly 17.4 months of coverage.
