Strategy Builds $2.2B Cash Reserve to Pay Preferred Stock Dividends and Debt Interest Without Selling Bitcoin, CNBC Reports
COINOTAG News, citing CNBC, reports that Strategy is accelerating its pivot toward liquidity management. The company has established a $2.2 billion cash reserve aimed at funding preferred stock dividends and debt interest without liquidating Bitcoin. Industry observers view the move as a proactive step to fortify the balance sheet amid volatility in the crypto cycle, potentially curbing the risk of passive selling as the Bitcoin valuation premium narrows.
This cash buffer is portrayed as a stabilizing measure that strengthens liquidity risk management and supports capital structure resilience. By prioritizing a reserve-driven payout strategy, Strategy reduces near-term dependence on crypto mark-to-market gains and may help mitigate forced selling pressure should the Bitcoin holdings valuation premium regress further, preserving enterprise value for shareholders.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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