- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
- Earn
- More
Strategy establishes a $1.44 billion Dividend Reserve Fund to pay dividends and debt interest
BlockBeats News, December 1st, according to SEC filings, Strategy Company announced the establishment of a $1.44 billion USD reserve fund, specifically for the payment of preferred stock dividends and existing debt interest. The source of this reserve fund is the proceeds from the sale of Class A common stock by the company under a market issuance plan.
Strategy Company currently plans to maintain a reserve size that covers at least 12 months of dividend payment needs, and intends to gradually strengthen the reserve fund size, with the ultimate goal of building a buffer fund that can cover 24 months or more of dividend payments. The existence, terms, and size of this reserve fund are entirely at the company's discretion, and Strategy will dynamically adjust the reserve fund size based on market conditions, liquidity needs, and other factors.
It is worth noting that this move may be a countermeasure against FUD in the market. Since Strategy follows a pattern of "issuing debt to buy coins - coin price rises - MSTR stock price soars - issuing debt again to buy coins," the market is concerned that if the Bitcoin price weakens, Strategy may be forced to sell coins due to a lack of cash to pay dividends. BlockBeats analyzed its situation in detail in the article "The Tribulation of MSTR: Shorting and Palace Intrigue" published in "Observing the Beatings."
You may also like
Dovey Wan: The Great Liquidity Schism, Bitcoin May Never Keep Up with ARKK
Market Key Insights for February 26th, How Much Did You Miss?
L1 Value Capture Shrinks Significantly, ETH, SOL, HYPE Struggle to Return to All-Time High
Exploring the ‘Super Cycle’ in Artificial Intelligence: Insights from Brad Gerstner
Key Takeaways The concept of a ‘super cycle’ in AI technology is gaining traction, spearheaded by industry experts.…
Children and Trump’s Investment Program: Billionaires’ Contributions to “Trump Accounts”
Key Takeaways: President Donald Trump has introduced the “Trump Accounts” program, massively funded by billionaires to provide financial…
Could Stablecoins Resolve U.S. Debt? Standard Chartered Predicts $1 Trillion in Treasury Demand
Key Takeaways Projected Growth: The stablecoin market could see its capitalization soar to $2 trillion by 2028, significantly…
Missouri Advances Bitcoin Reserve Bill to House Committee in Policy Push
Key Takeaways Missouri pushes HB 2080, aiming to establish a state-run Bitcoin Strategic Reserve Fund. The bill mandates…
Ethereum Faces $1,500 Downside as Vitalik Buterin Sells 9,000 ETH
Key Takeaways Vitalik Buterin’s recent sale of nearly 9,000 ETH has triggered concerns over Ethereum’s price stability, given…
Hong Kong to Connect New Digital Bond Platform With Regional Crypto Tokenization Hubs
Key Takeaways Hong Kong is pioneering the integration of its debt market with blockchain technology through a new…
Elon’s Grok AI Predicts the Price of XRP, Cardano, and Ethereum by 2026
Key Takeaways Grok AI forecasts significant price growth for XRP, Cardano, and Ethereum by 2026. XRP could see…
Anchorage Digital Confirms Its Stake in Strategy’s STRC – A Sign of Long-term Confidence
Key Takeaways Anchorage Digital has officially disclosed holding Strategy’s STRC perpetual preferred stock, reinforcing its strategic alignment within…
Bitcoin Price Prediction: Major Miner Expands in Texas: Is a Massive BTC Production Surge Anticipating?
Key Takeaways: Canaan Inc. has expanded its role from hardware selling to direct Bitcoin production by acquiring a…
Crypto Price Prediction Today 25 February: XRP, Solana, Bitcoin
Key Takeaways Bitcoin’s recent surge to $66,000 reflects a potential bullish trend bolstered by institutional interest and regulatory…
Bitcoin Climbs on Market Optimism Ahead of Trump’s State of the Union
Key Takeaways Bitcoin’s price surged over $2,000 to surpass the $66,000 mark following optimistic signals prior to Trump’s…
An AI Crypto Agent Accidentally Bestows Six Figures, Then a Twist of Fate Strikes
Key Takeaways: An AI crypto agent mistakenly sent 52.4M LOBSTAR tokens to an unintended recipient due to a…
XRP Price Prediction: Will Massive Whale Movements Lead to a Crash Below $1?
Key Takeaways Significant whale activity on Binance has seen the movement of over 31 million XRP, causing potential…
Arizona Just Named XRP in a State Crypto Reserve Bill — Is Government Adoption Beginning?
Key Takeaways Arizona’s Senate Bill 1649 proposes the inclusion of XRP and DigiByte, alongside Bitcoin, in a Digital…
Ethereum Secures FOCIL and Redirects $6.8M in ETH to Staking
Key Takeaways Ethereum’s Hegota upgrade in the second half of 2026 will integrate the FOCIL proposal, reinforcing censorship…
Dovey Wan: The Great Liquidity Schism, Bitcoin May Never Keep Up with ARKK
Market Key Insights for February 26th, How Much Did You Miss?
L1 Value Capture Shrinks Significantly, ETH, SOL, HYPE Struggle to Return to All-Time High
Exploring the ‘Super Cycle’ in Artificial Intelligence: Insights from Brad Gerstner
Key Takeaways The concept of a ‘super cycle’ in AI technology is gaining traction, spearheaded by industry experts.…
Children and Trump’s Investment Program: Billionaires’ Contributions to “Trump Accounts”
Key Takeaways: President Donald Trump has introduced the “Trump Accounts” program, massively funded by billionaires to provide financial…
Could Stablecoins Resolve U.S. Debt? Standard Chartered Predicts $1 Trillion in Treasury Demand
Key Takeaways Projected Growth: The stablecoin market could see its capitalization soar to $2 trillion by 2028, significantly…
App