Strategy Boosts Its Bitcoin Stack to 650,000 BTC as Price Falls Below $85K


The company bought another 130 BTC.

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Michael Saylor, the BTC champion and former CEO of the NASDAQ-listed company, made two major announcements today. The first was expected – a new purchase of BTC that brought the firm’s total stash to 650,000 units.

The second was the establishment of a USD Reserve worth $1.44 billion to “support the payment of dividends on its preferred stock and interest on its outstanding indebtedness.” The initiative was funded from proceeds from the sale of shares of class A common stock under Strategy’s at-the-market offering program.

The company intends to maintain this reserve in an amount sufficient to fund at least 12 months of its dividends, and wants to strengthen it over time to have enough funds for two years.

“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution, and we believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of Digital Credit,” said Michael Saylor, Founder and Executive Chairman.

In addition, Saylor outlined the acquisition of another 130 BTC for $11.7 million, bought at an average price of $89,960 per unit. Consequently, its stash has grown to 650,000 BTC, or 3.1% of all bitcoins ever to exist.

This announcement was made amid another sell-off in the cryptocurrency markets. As reported earlier, BTC traded above $91,000 yesterday but slumped to $85,500 earlier today. The losses extended in the past hour or so as the cryptocurrency dropped to $84,500 before it bounced to the current $86,000.

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Source: https://cryptopotato.com/strategy-boosts-its-bitcoin-stack-to-650000-btc-as-price-falls-below-85k/