Strategy Adds $525M to USD Reserve, Pushing Dividend Coverage to 2.1 Years

The company said the reserve now covers 2.1 years of dividend and interest payments on its outstanding preferred stock and debt.

Executive Chairman Michael Saylor confirmed the update on X, writing that Strategy had increased its USD Reserve by $525 million, “achieving 2.1 years of dividend coverage.” He added that the firm holds 843,775 BTC in its bitcoin Reserve alongside the $3.75 billion cash buffer.

Bitcoin Holdings Hold Steady

The filing shows no new bitcoin purchases during the week of July 20 to July 26. Strategy’s total holdings remain unchanged at 843,775 BTC, acquired for an aggregate $63.69 billion at an average price of $75,476 per coin.

A Strategytracker.com chart shared by Saylor put the reserve’s market value at $54.36 billion as of July 26, roughly 14.84 percent below the average cost basis, a paper loss of about $9.47 billion at current prices.

Saylor Teased the Move a Day Early

On Sunday, Saylor posted “We’re gonna need another color,” alongside the same tracker chart, a reference to the chart’s growing bitcoin purchase markers. The post came 23 hours before Monday’s reserve announcement.

Preferred Share Buybacks Continue

Strategy repurchased 288,930 shares of its STRC preferred stock during the week for $25 million. No shares of STRF, STRK, or STRD were bought back.

The company said $975 million remains available under its Digital Credit Securities Repurchase Program, first announced June 29. Separately, $1 billion remains available under the MSTR common stock repurchase program, though no common shares were repurchased this week.

Stock Sales Fund the Reserve

Strategy sold 5,429,160 shares of MSTR common stock through its at-the-market program, generating $544.5 million in net proceeds. No preferred shares were sold under the ATM during the period.

Remaining ATM capacity stood at $1.62 billion for STRF, $17.51 billion for STRC, $2.10 billion for STRK, $4.01 billion for STRD, and $22.98 billion for MSTR common stock.

What This Means for Investors

For holders of Strategy’s preferred stock, the larger reserve extends the runway for dividend payments without relying on new bitcoin sales. The unchanged BTC holdings, despite the unrealized loss shown on the tracker chart, signal the company is not adjusting its position in response to price swings.

The filing was signed by Thomas C. Chow, Strategy’s Executive Vice President and General Counsel, and furnished under Item 7.01 of the Exchange Act.