Strategy today announced that it has established a USD Reserve of $1.44 billion to support the payment of dividends on its preferred stock and interest on its outstanding indebtedness (“Dividends”). The USD Reserve was funded using proceeds from the sale of shares of class A common stock under Strategy’s at-the-market offering program. 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, with the goal of ultimately covering 24 months or more of its Dividends.
pull down to refresh
related posts
112 sats \ 0 replies \ @elvismercury 6h
It's like Tether in reverse - start w giant btc hoard, acquire USD equivalents. This seems sensible as a buffer vs selling btc to pay dividends.
reply
145 sats \ 1 reply \ @justin_shocknet 4h
That's cause to be spooked imo, wonder if they got tipped off about a dollar squeeze on the horizon.
Talking for years about dollars being a melting ice cube then amassing cash is a notable change of character.
reply
17 sats \ 0 replies \ @halalmoney 3h
The dollar milkshake Strategy.
I’ll see myself out
reply
0 sats \ 1 reply \ @Wumbo 10h
I wonder if they are going to keep it in Dollars or buy US treasuries with it?
reply
49 sats \ 0 replies \ @grayruby 8h
Likely both. They will keep some cash but then buy short term treasuries with the rest.
reply
0 sats \ 0 replies \ @Tehila 6h
Hilarious. Shareholders are fucked.
reply
0 sats \ 0 replies \ @BlokchainB 1h
It’s risk management to appease the credit agencies to raise that B- rating.
Plus how many stackers are truly on zero? Most have some cash buffer unless you are Darthcoin but then you depend on friends and exchanges to pay your bills
reply