Strategy Inc., the company that used to be called MicroStrategy before it went full Bitcoin maximalist, just parked another $1.15 billion in cash reserves. The move brings its total USD reserve to approximately $2.55 billion as of June 28, dedicated entirely to keeping dividend checks and interest payments flowing.

Strategy holds roughly 845,000 BTC, making it by far the largest corporate Bitcoin holder on the planet. The company has about $1.76 billion in annual obligations between preferred stock dividends and debt interest. Without a serious cash cushion, any prolonged Bitcoin downturn could force the company to sell BTC at the worst possible time to meet those payments.

The Digital Credit Capital Framework

The reserve boost comes as part of a broader initiative Strategy is calling its Digital Credit Capital Framework. Announced June 29, the framework formalizes how the company manages the tension between holding a mountain of Bitcoin and owing regular payments to shareholders and creditors.

The board now mandates a minimum reserve coverage of 12 months for dividends and debt interest. At $2.55 billion against $1.76 billion in annual obligations, the current reserve provides approximately 17.4 months of coverage. That’s down from the roughly 21 months of coverage the company had in December 2025, when its reserve stood at $1.44 billion. The obligations have grown alongside the reserve.

The framework also authorizes up to $1.25 billion in what the company calls “Bitcoin monetization capacity.” Combined with the USD reserve, this gives the company total liquidity coverage of roughly $3.80 billion, or about 25.9 months of obligations.

A dividend hike and buybacks

Strategy is also raising the dividend rate on its STRC preferred stock to 12%, effective for record dates on or after July 1, 2026.

The company is funding these reserves primarily through ATM (at-the-market) equity sales, essentially issuing new common stock into the open market. This approach lets Strategy build cash buffers without touching its Bitcoin stash.

On top of the reserve and dividend moves, Strategy is executing over $1 billion in combined preferred and common stock repurchase programs. Repurchasing preferred stock reduces future dividend obligations, while common stock buybacks can offset some of the dilution from ATM sales.

What this means for investors

For STRC preferred stockholders, the 12% dividend rate is genuinely attractive. The reserve covers 17.4 months. If Bitcoin enters a sustained bear market lasting longer than that, and ATM equity sales dry up because MSTR’s stock price has cratered alongside Bitcoin, the company would need to start liquidating BTC. That’s the scenario the $1.25 billion monetization authorization is designed for.

Strategy’s previous reserve of $1.44 billion in December 2025 covered 21 months of obligations. Six months later, the reserve has grown by $1.15 billion but the coverage ratio has actually shrunk to 17.4 months because the obligations grew faster. That trajectory is worth monitoring closely.