Strategy increases USD reserves by $100M to $1B for dividends
Strategy, the company formerly known as MicroStrategy, just topped up its cash reserves by $100 million, bringing the total USD Reserve to $1 billion as of June 7. The move is designed to ensure the company can keep paying dividends on its growing stack of preferred stock obligations.
The company simultaneously disclosed a $101.3 million Bitcoin purchase, scooping up 1,550 BTC between June 1 and June 7. That brings its total Bitcoin war chest to 845,256 BTC, valued at roughly $63.97 billion.
The cash cushion and why it matters
Strategy’s USD Reserve is the dedicated pool of cash earmarked for dividend payments and debt interest across the company’s various preferred stock series. The company faces an estimated $1.7 billion in annual preferred dividend payments, meaning the $1 billion reserve represents about seven months of runway on that front alone.
The reserve had actually been drained to $871 million back on May 25. The reason? Strategy used the cash to fund a $1.5 billion repurchase of convertible notes, essentially paying down debt at the expense of its liquidity buffer.
Bitcoin buying continues, selling remains minimal
The latest 1,550 BTC purchase reinforces the pattern of consistent weekly accumulation. Strategy sold just 32 BTC the week before this latest purchase, maintaining its longstanding policy of not selling Bitcoin to fund operations.
That architecture now includes 845,256 BTC. The purchase price of $101.3 million for 1,550 BTC implies an average acquisition cost of roughly $65,400 per coin for this batch.
The reserve’s brief history tells a story
Strategy established its USD Reserve on December 1, 2025, starting with $1.44 billion. The May drawdown to $871 million to fund the convertible note repurchase showed how quickly the buffer can shrink when the company makes aggressive capital allocation decisions. Going from $1.44 billion to $871 million in roughly six months, the bounce back to $1 billion highlights a structural reality: Strategy issues preferred stock to raise capital, uses that capital to buy Bitcoin, and then needs enough cash on hand to pay the dividends it promised to preferred shareholders.
What this means for investors
The risk that investors should watch is the gap between the $1 billion reserve and the $1.7 billion annual dividend obligation. That gap means Strategy needs to continuously generate or raise capital to cover the difference. If either capital market access or Bitcoin price conditions change, the math gets uncomfortable quickly.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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