Strategy Own More Than 3% Of All Bitcoin – So Why Did It Raise $1.44 Billion In Cash?

• Strategy Inc. has set up a $1.44 billion USD reserve to cover about 21 months of dividends and interest without selling Bitcoin.
• The buffer is funded by selling roughly 8.2 million new MSTR shares into a falling market, diluting existing holders.
• The move buys time in a crypto downturn but leaves Strategy exposed if Bitcoin weakness and big debt maturities collide later this decade.

Strategy Inc., which holds more Bitcoin than any other public company, has created a $1.44 billion 'USD Reserve' to keep paying dividends and interest during the ongoing crypto slump, without selling a single BTC.

According to the company’s December 1 update, the reserve is funded entirely in cash raised from selling Class A common stock via an at-the-market program, not from selling any Bitcoin. 

Michael Saylor-led Strategy has about 3.1% of all the BTC in circulation, or about 650,000 Bitcoin, as of December 2. According to the software firm, the reserve already covers 21 months of planned payouts and aims to increase that to 24 months or more over time. 

MSTR’s stock rose 6% in morning trade on Tuesday and was among the top trending tickers on Stocktwits. Retail sentiment on the platform improved to ‘extremely bullish’ from ‘bullish’ over the past day, accompanied by ‘high’ levels of chatter.

Meanwhile, Bitcoin’s price rose 6% in the last 24 hours, climbing back above $90,000 in morning trade. On Stocktwits, retail sentiment around the apex cryptocurrency trended in ‘bearish’ territory over the past day amid ‘low’ levels of chatter.

Why A Bitcoin Maxi Suddenly Needs Cash

The Financial Times portrays the reserve as a response to Bitcoin's steep decline. BTC has gone from more than $126,000 to nearly $85,000 in just over a month, and Strategy’s stock has dropped roughly 40% this year. The drop is significant because, according to Barron's, Strategy has stacked around $8 billion of preferred shares on top of its Bitcoin stack, with yearly dividend commitments exceeding $700 million.

Investor’s Business Daily estimates that interest plus preferred dividends now total roughly $800 million a year, and said the share sale raised about $1.4 billion, which is enough to cover around 21 months of those cash outflows. 

In a conversation with Cointelegraph, Daniel Batten, a technology investment coach with a specialization in Bitcoin, said he was “not concerned at all”, given Strategy’s “mNAV disappear[ed] well below one to see the cost basis”. Strategy’s mNAV, or market-based Net Asset Value, is an indicator that helps investors determine a fund's underlying value by assessing its market-reflectivity.

Gauge The Risk For MSTR And Bitcoin-Exposed Investors

Previously, on November 28, Strategy-CEO Phong Le explained that the only situation where Strategy would have to sell its Bitcoin holding would be if MSTR trades below 1x mNAV or if it cannot obtain equity or debt, signaling that external financing is not an option anymore. Phong Le said, “Strategy would only sell Bitcoin as a last resort if mNAV fell below 1 and capital markets shut.” 

Currently, the company's mNAV is 1.17, over the threshold for such conditions. Based on this structure, the USD reserve is likely to ensure that short-term commitments can be satisfied without selling any Bitcoin, particularly during a crypto winter.

At press time, MSTR is trading at $171.42, up just 1.69% in pre-market hours.

Read also: Bitcoin’s Price Steadies At $86,000 After $1B Liquidations – Grayscale Sees New Highs In 2026

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