Strategy, the enterprise-focused Bitcoin holding company led by CEO Phong Le, has established a $1.44 billion U.S. dollar reserve — a move designed to ensure the firm can meet all of its financial obligations without ever being forced to sell Bitcoin during market volatility.
In a recent interview, Le explained the reasoning behind the large cash buffer:
“We’re very much part of the crypto ecosystem and Bitcoin ecosystem… which is why we decided to start raising capital and putting U.S. dollars on our balance sheet to get rid of this FUD.”
A Defensive Buffer to Weather Market Cycles
Earlier this week, Strategy announced the creation of its $1.44B reserve, funded through a stock sale completed in just over a week. According to Le, the reserve will cover:
- •Dividend payments on preferred stock
- •Interest on outstanding debt
- •At least 12 months of financial obligations, with plans to expand to 24 months
This dual-reserve model, Le noted, ensures the company maintains financial flexibility even during a Bitcoin downcycle, allowing it to avoid liquidating BTC to stay solvent.
Addressing Dividend Concerns and Strengthening Investor Confidence
The initiative comes amid market chatter suggesting the firm may struggle to meet dividend and debt obligations if its stock price declines meaningfully. Le characterized this as pure "FUD," stressing that Strategy remains fully capable of meeting its commitments.
The company’s decision to raise 21 months' worth of dividend coverage was deliberate — meant to demonstrate that it can secure capital even when broader market sentiment turns bearish.
Last week, Le reiterated that Strategy would consider selling Bitcoin only if its stock fell below net asset value and if access to additional capital completely dried up. To further increase transparency, the company launched a “BTC Credit” dashboard, showing it possesses more than 70 years of dividend-servicing capacity based on current assets.
Strategy now holds over 650,000 BTC, purchased at an average cost of $87,000 per coin, reinforcing its role as one of the largest corporate Bitcoin holders globally.
Corporate Bitcoin Treasuries Gain Influence as Miner Pressures Rise
Strategy’s financial maneuvering coincides with heightened stress on Bitcoin miners, who are facing increased production costs and shrinking margins following the most recent halving cycle. As miners’ BTC output tightens, analysts say institutional treasuries like Strategy’s have begun playing a larger role in overall market stability.
With miners reducing supply and volatility rising, corporate balance sheets — rather than mining rewards — are increasingly shaping investor sentiment. Many analysts view Strategy’s reserve as a sign of Bitcoin’s evolution as a corporate-grade asset, shifting from speculative acquisition toward disciplined financial management.
By minimizing liquidity risk and securing long-term operational capacity, Strategy positions itself as a stabilizing force in Bitcoin's maturing market structure.