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Strategy (MSTR) Increases Bitcoin Holdings and Establishes $1.44 Billion Reserve
Michael Saylor, executive Chairman of Strategy (MSTR), announced the acquisition of 130 more Bitcoin, totaling $11.7 million. This purchase increases the company's holdings to 650,000 BTC.
Key Developments
- Strategy's total Bitcoin investment is approximately $48.38 billion, with an average purchase price of $74,436 per BTC.
- The latest Bitcoin purchase was made at an average price of $89,960 per BTC.
- Despite a BTC market dip to $86,000, triggering $600 million in liquidations, Michael Saylor remains optimistic about Bitcoin's future.
- MSTR stock fell by 4.6% in pre-market trading on Dec. 1, reflecting broader market trends.
Dividend Reserve and Market Reaction
- Strategy established a $1.44 billion USD reserve to fund dividend payments and debt obligations, funded by an equity offering.
- This reserve aims to cover at least 12 months of dividends, with plans to extend coverage to 24 months.
- Michael Saylor emphasizes that this move supports the company's vision as a leading issuer of Digital Credit.
- Peter Schiff criticized Saylor's approach, claiming it reflects a flawed business model.