Strategy Says Bitcoin Reserve Provides 31 Years of Dividend Coverage as Cash Buffer Reaches $3.2 Billion
Strategy Inc. (Nasdaq: MSTR) has reported that its bitcoin treasury now provides 31 years of dividend coverage, while its U.S. dollar reserve supports 1.8 years of near-term dividend obligations. The figures, disclosed by Chaitanya Jain, head of bitcoin product & investor at Strategy, on July 20, shift market focus from bitcoin purchases to the company’s ability to sustain preferred-share obligations.
The U.S. dollar reserve reached $3.225 billion as of July 19, according to an SEC filing, intended to fund preferred-stock dividends and interest payments on outstanding debt. This dedicated liquidity reduces near-term funding pressure and limits reliance on bitcoin sales to meet financial obligations.
The 31-year coverage estimate underscores the scale of Strategy’s bitcoin holdings: 843,775 BTC acquired for approximately $63.69 billion at an average purchase price of $75,476 per bitcoin. This metric could change with fluctuations in bitcoin’s value or dividend commitments.
Additional liquidity was built through equity issuance during the July 13–19 period, with the company selling 2.73 million MSTR shares, generating approximately $263.5 million in net proceeds. No preferred shares were issued, and no share repurchases occurred.
The larger cash reserve strengthens confidence in Strategy’s ability to meet dividend and debt obligations, but it coincides with an extended pause in bitcoin accumulation. The latest filing confirmed no bitcoin purchases during the reporting period, leaving total holdings unchanged since June 22.
Future SEC filings will reveal whether the expanding cash reserve is deployed into additional bitcoin purchases or retained for greater financial flexibility. Management’s balance between liquidity and renewed accumulation remains a key measure of Strategy’s long-term treasury strategy.