Strategy's $4.65 Billion Cash Reserve Raises Questions About Bitcoin Company Funding Strategies
Strategy's U.S. dollar reserve has reached $4.65 billion, up from $3.75 billion just two weeks earlier.
The company, built around accumulating Bitcoin, holds this large sum in cash because it operates as an issuer of Digital Credit: preferred securities backed by a massive Bitcoin balance sheet.
Strategy's software business generates little to no cash flow, and traditional credit analysis further exacerbates the problem. The company was assigned a B- rating by S&P in October 2025, citing its high concentration of Bitcoin and weak dollar liquidity.
The $4.65 billion reserve is used to support Strategy's credit issuance, improving the perceived safety of its preferred securities, broadening investor demand, and potentially lowering its cost of capital according to credit ratings agencies.