Strategy Taps Cash Reserves Over Bitcoin Amid Dividend Obligations
Strategy Inc., led by CEO Phong Le, has learned a valuable lesson in maintaining cash reserves over liquid Bitcoin. In a recent earnings call, Le revealed that the company realized the importance of holding U.S. dollars to fund its dividend obligations on its Perpetual Stretch Preferred Stock (NASDAQ:STRC) by the end of 2026.
'We thought that liquid Bitcoin would be important, but what Mike [Michael Saylor] mentioned earlier is that the people who are holding these preferreds don’t look at Bitcoin the way they look at U.S. dollars,' Le added.
Strategy now maintains $3.75 billion in cash reserves, which covers more than two years of its dividend and interest obligations.
The company's decision to bolster its cash reserves came after it unveiled a Bitcoin monetization program earlier this month, allowing it to sell BTC to fund repurchases of preferred and common shares, as well as pay off debt interest.