{"id":91645,"date":"2025-12-02T13:01:57","date_gmt":"2025-12-02T10:01:57","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=91645"},"modified":"2025-12-02T19:03:22","modified_gmt":"2025-12-02T16:03:22","slug":"strategy-builds-1-44bn-reserve-to-fund-dividends","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/strategy-builds-1-44bn-reserve-to-fund-dividends\/","title":{"rendered":"Strategy Builds $1.44 Billion Reserve to Fund Dividends"},"content":{"rendered":"

Strategy has established a $1.44bn reserve to ensure \u201cstable and uninterrupted\u201d dividend payments should the price of the first cryptocurrency fall, CEO Phong Le said<\/a>.\u00a0<\/p>\n

The fund was built by selling MSTR shares over the past nine days. The aim is to secure at least a year\u2019s cover for obligations to shareholders and, over time, to expand the safety buffer to more than two years of payouts.\u00a0<\/p>\n

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\u201cThe nature of bitcoin implies volatility. Our task is to create a digital debt instrument for investors who are sensitive to market swings, and to guarantee them complete independence of dividend payments from fluctuations. It is precisely to secure this guarantee that we formed a fund in US dollars,\u201d said Strategy founder Michael Saylor.\u00a0<\/em><\/p>\n<\/blockquote>\n

At the same time, management confirmed<\/a> it is ready to sell digital gold if needed. Le allowed for such a scenario if mNAV<\/span> drops below 1.\u00a0<\/p>\n

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\u201cThere is some scepticism around our approach: some believe that we lack the ability, willingness or resolve to sell part of our bitcoin holdings to finance the dividend policy. This narrative is periodically used to create a negative perception of the company, and our task is to dispel it completely,\u201d Saylor added.\u00a0<\/em><\/p>\n<\/blockquote>\n

According to him, the reality is the opposite: the firm not only has the right and ability to sell cryptocurrency, but can also realise assets that have appreciated significantly. After such operations, Strategy will retain the capacity to increase its bitcoin reserve each quarter \u2014 \u201cthat process can be infinite,\u201d the founder said.\u00a0<\/p>\n

Strategy is currently the largest corporate holder of the first cryptocurrency. It manages 650,000 BTC worth about $56bn, roughly 3.1% of the total supply of digital gold.\u00a0<\/p>\n

\"image\"
Top five largest holders of bitcoin among public companies. Source: BitBo<\/a>.\u00a0<\/figcaption><\/figure>\n

Between 17 and 30 November, Strategy acquired<\/a> another 130 BTC for about $11.7m. The average purchase price was $89,960.<\/p>\n

Since the start of its bitcoin accumulation, Saylor\u2019s cardinal rule was never to sell it. The company\u2019s current strategy suggests a rethink.\u00a0<\/p>\n

The shift is driven by a fundamental requirement of Strategy\u2019s business model: the company must generate dividends for shareholders. The primary funding mechanism is issuing shares, but that instrument is effective only if mNAV exceeds 1, management said.\u00a0<\/p>\n

The community is uneasy about a potential sale of bitcoin by Saylor\u2019s firm. Gold advocate and crypto sceptic Peter Schiff again declared an \u201capproaching end of Strategy\u201d.\u00a0<\/p>\n

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Today is the beginning of the end of $MSTR<\/a>. Saylor was forced to sell stock not to buy Bitcoin, but to buy U.S. dollars merely to fund MSTR’s interest and dividend obligations. The stock is broken. The business model is a fraud, and @Saylor<\/a> is the biggest con man on Wall Street.<\/p>\n

\u2014 Peter Schiff (@PeterSchiff) December 1, 2025<\/a><\/p><\/blockquote>\n