
According to the company’s official statement, MicroStrategy’s expanded reserve ensures dividend coverage for 2.5 years and strengthens liquidity ahead of its 2027 bond maturity amid Bitcoin market cyclicality.
MicroStrategy (MSTR), the largest public holder of Bitcoin, announced increasing its cash reserves to $2.2 billion to secure 2.5 years of annual preferred dividend payments totaling $824 million and mitigate risks from Bitcoin's four-year cycle. The company raised $748 million through stock sales, reinforcing liquidity for $1 billion in convertible bonds due September 2027. The strategy is designed to maintain financial resilience and operational stability during cryptocurrency market volatility.