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Bitcoin Backer Strategy Creates $1.4 Billion Reserve, But There's Major Twist

Mon, 1/12/2025 - 14:02
Strategy has established a new reserve that is specifically meant to cover dividend payments .
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Bitcoin Backer Strategy Creates $1.4 Billion Reserve, But There's Major Twist
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Business intelligence firm Strategy has established a $1.44 billion U.S. dollar reserve. The reserve has been funded through at-the-market (ATM) sales of its MSTR stock. 

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This reserve is specifically intended to cover dividend payments on its preferred stocks and interest on existing debt. 

Unsurprisingly, the idea of establishing a USD reserve did not sit well with some Bitcoin maximalists. Some argue that holding substantial BTC reserves contradicts the company’s “Bitcoin maximalist” mantra. 

Major Bitcoin milestone 

The total Bitcoin holdings of business intelligence firm MicroStrategy have now surpassed 650,000 coins. 

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Its most recent purchase of 130 BTC (roughly $12 million at current prices) finally allowed the company to surpass the aforementioned milestone. 

Strategy announced its first BTC purchase back in August 2020.

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