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After the price fell below $85,000, Strategy increased its holdings of Bitcoin to 650,000 Bitcoins.
The company’s founder and former CEO, Michael Saylor, revealed two key steps in a statement today.
The first step is to purchase a new batch of Bitcoin, bringing the company’s total holdings to a record level.
The second step is to build a U.S. dollar cash reserve worth $1.44 billion, with the purpose of supporting preferred stock dividends as well as interest payments on existing debt.
The reserve is funded by proceeds from the sale of Class A common stock as part of a market offering program.
The company plans to maintain reserves sufficient to cover its debt for at least a full year, while seeking to gradually increase reserves for up to two years.
Saylor explained that building cash reserves alongside Bitcoin reserves is a new step in the company’s journey, enhancing its ability to respond to short-term fluctuations in the market while continuing to achieve its vision of becoming the world’s most prominent digital credit exporter.
He also revealed that the company will acquire an additional 130 Bitcoins worth $11.7 million at an average price of $89,960 per coin, bringing the company’s Bitcoin holdings to 650,000, equivalent to about 3.1% of the currency’s total global supply.
The announcement coincides with a massive sell-off in the digital currency market.
After breaking above $91,000 yesterday, Bitcoin price fell to $85,500 today and touched the $84,500 level before rising again to around $87,000.
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