Strategy establishes a $1.44 billion dividend reserve fund.
TL;DR
Strategy Inc. has created a $1.44 billion reserve fund from stock sales to cover at least 12 months of preferred dividends and debt interest, with plans to expand it to 24 months based on market conditions.
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According to ChainCatcher, SEC filings show that Strategy Inc. has announced the establishment of a $1.44 billion dollar reserve specifically for paying preferred stock dividends and interest on existing debt. The reserve will be funded by proceeds from the sale of Class A common stock under the company's market offering plan.
Strategy currently plans to maintain a reserve size that covers at least 12 months of dividend payment needs and intends to gradually increase the size of its reserves, with the ultimate goal of building a buffer fund that can cover dividend payments for 24 months or more.
The continuation, terms, and size of the reserve fund are entirely at the company's discretion. Strategy will dynamically adjust the size of the reserve fund based on market conditions, liquidity needs, and other factors.