Strategy Inc. Boosts USD Reserves to $2.55B, Covering 17.4 Months of Obligations
In brief
- Strategy Inc. added $1.15B USD reserves, totaling $2.55B as of June 28
- Company holds 845,000 BTC, largest corporate Bitcoin holder globally
- Annual obligations: $1.76B in preferred dividends and debt interest
- Digital Credit Capital Framework mandates minimum 12-month reserve coverage
- Combined liquidity reaches $3.80B, covering 25.9 months of obligations
Liquidity Framework and Coverage Ratios
Strategy's cash reserve now covers approximately 17.4 months of dividend and debt payments. That's down from roughly 21 months in December 2025, when reserves stood at $1.44 billion. The company announced its Digital Credit Capital Framework on June 29 to formalize how it manages the balance between holding Bitcoin and meeting regular payment obligations.
The board mandates a minimum reserve coverage of 12 months for dividends and debt interest under the new framework. Strategy also authorized up to $1.25 billion in Bitcoin monetization capacity, which combined with the USD reserve provides total liquidity coverage of roughly $3.80 billion—or about 25.9 months of obligations.
Funding and Capital Allocation
The company is funding these reserves primarily through ATM (at-the-market) equity sales, issuing new common stock into the open market. Strategy is also executing over $1 billion in combined preferred and common stock repurchase programs. Additionally, the company is raising the dividend rate on its STRC preferred stock to 12%, effective for record dates on or after July 1, 2026.
The Downside Risk
The reserve increase doesn't eliminate structural risk. "Without a serious cash cushion, any prolonged Bitcoin downturn could force the company to sell BTC at the worst possible time to meet those payments." A sharp decline in Bitcoin's price would compress both the asset base and the time available to raise cash through equity sales. Strategy's coverage ratio already slipped despite the $1.15 billion boost—a sign that obligations are growing faster than reserves can accumulate through traditional funding.
