MicroStrategy raises USD reserve to $2.2B to cover 2.5 years of preferred dividends and back $1B 2027 convertible

Published: 2025-12-23 11:28:55 |

MicroStrategy (MSTR) increased its USD cash reserve to $2.2 billion after a $748 million equity sale, boosting liquidity to cover roughly 2–2.5 years of preferred-stock dividends and to back a $1.0 billion convertible note due September 2027. The enlarged cash buffer is intended to reduce refinancing risk and protect dividend payments through 2026–2028 amid Bitcoin’s multi-year cycles and extreme volatility. MSTR holds 671,268 BTC, which gives optionality if the company must settle the convertible in cash; if MSTR’s share price remains below the $183 conversion price the firm would likely repay in cash, otherwise conversion to equity is expected. Chief Risk Officer Jeff Walton said the reserve covers the convertible due in 2027 and provides additional months of preferred-dividend coverage. MSTR shares trade around $163–165, about 12% below the $183 conversion threshold and roughly 45% down year-to-date. Separately, data showed global public companies had net purchases of $26.35 million in BTC last week while MicroStrategy did not add to its bitcoin holdings. Key SEO keywords: MicroStrategy, MSTR, cash reserve, preferred dividends, convertible note, bitcoin treasury, BTC holdings.

Neutral

The announcement is neutral for BTC price action. On one hand, MicroStrategy’s $2.2B cash reserve reduces immediate liquidation risk tied to its $1.0B convertible due in Sept 2027 and covers preferred dividends, which lowers the probability of forced BTC sales that would exert downward pressure on bitcoin. The company’s large BTC treasury (671,268 BTC) still represents potential sell-side risk, but the new cash buffer and explicit intent to use cash to cover obligations if shares stay below the $183 conversion price reduce short-term tail risk. Market signals are mixed: MSTR shares are trading ~12% below conversion price, increasing the chance of a cash settlement (which is neutral for BTC if funded from cash rather than BTC sales), while continued equity weakness could limit MicroStrategy’s ability to add BTC, removing a consistent demand source. Overall, expect muted direct impact on BTC price—reduced downside tail risk but no clear bullish catalyst. For traders: monitor MSTR share price vs. $183 conversion level, corporate cash burn and dividend schedule, and any announcements about using BTC vs. cash to settle obligations; material moves or unexpected BTC sales would be catalysts for short-term volatility.