Michael Saylor’s Strategy, the world’s largest Bitcoin holder, continued accumulating the asset last week, lifting its total holdings to a symbolic value of 650,000 BTC.
Strategy also announced the formation of a U.S. dollar reserve of $1.44 billion to support the smooth payment of dividends on its preferred stock and interest on its outstanding debt, even when Bitcoin is down. The alpha crypto has fallen approximately 32.9% to around $84,000 since setting a record high above $126,000 in October, according to CoinGecko.
Strategy Buys Another 130 BTC For $11.7 Million
Strategy added 130 BTC for around $11.7 million at an average price of $89,960 per coin, according to an SEC filing. The recent buy lifted the average purchase price up to $74,436 per Bitcoin.
The Tysons Corner, Virginia-based firm — formerly MicroStrategy — now holds 650,000 BTC worth around $56 billion at Bitcoin’s current price of $84,130. This stockpile represents about 3.1% of Bitcoin’s total supply, and despite the recent market downturn, it still implies over $7 billion of unrealized gains.
The latest purchase was made using proceeds from at-the-market sales of its Class A common stock, MSTR. Strategy sold 8,214,000 MSTR shares for roughly $1.48 billion. Notably, no shares of its various perpetual preferred stocks were sold during the same period.
Strategy Establishes USD Reserve To Complement Bitcoin Haul
Additionally, Strategy announced a $1.44 billion US dollar reserve created using proceeds from the sales of common stock last week. According to the press release, the company initially intends to keep enough money in reserve to fund at least twelve months of dividends.
“Strategy’s current intention is to maintain a USD Reserve in an amount sufficient to fund at least twelve months of its dividends, and Strategy intends to strengthen the USD Reserve over time, to ultimately cover 24 months or more of its dividends,” the company said.
Instead of his usual playful Bitcoin purchase hints, where he posts a chart with orange dots, Strategy co-founder and Executive Chairman Michael Saylor posted the same chart on Sunday, but stated, “What if we start adding green dots?” — likely referencing the new $1.44 billion USD reserve.
“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution, and we believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of Digital Credit,” Saylor quipped in a statement.
Source: https://zycrypto.com/strategy-expands-bitcoin-holdings-to-650000-btc-launches-new-1-4-billion-dividend-reserve/
