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.
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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.
The dollar milkshake Strategy.
I’ll see myself out
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.
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
Yes, with the ratings, they also want Strategy to be listed on S&P 500.
I wonder if they are going to keep it in Dollars or buy US treasuries with it?
Likely both. They will keep some cash but then buy short term treasuries with the rest.
Good move - it will give investors who are considering their “preferred” equity offerings, but were worried about the company’s ability to pay dividends in a BTC bear market.
Hilarious. Shareholders are fucked.