Strategy Bolsters USD Reserve to $2.19B to Counter Insolvency Fears
Michael Saylor appears to have dismissed the notion of selling Strategy's Bitcoin holdings, as evidenced by the firm's bolstered U.S. Dollar Reserve.
Strategy recently announced an expansion of its USD reserve fund by $748 million, bringing the total to nearly $2.2 billion. This fund, initially announced in December, is designed to meet dividend obligations tied to preferred stocks, which are utilized to raise capital for Bitcoin acquisitions.
Market Reactions
The $2.2 billion reserve now covers mid-term obligations for 31 months. Meanwhile, most of Strategy's $8 billion debt is due in three years, with the first maturity in 2028. According to analyst James Van Straten, this move aims to address MSCI exclusion risk and alleviate insolvency fears. "Just to put the insolvency FUD to bed. Well played," he remarked.
Similarly, predictions from Polymarket indicate a 75% chance of Strategy being delisted from the MSCI index by Q1 2026, although the odds of selling BTC in H1 2026 remain low at 17%, dropping below 10% by Q1 2026.
Analyst Insights
Despite potential MSCI index exclusion, the low risk of forced Bitcoin liquidations is attributed to the USD reserve fund, which will cover immediate dividend obligations. Analyst Adam Livingstone linked the USD reserve enhancement to S&P Global recommendations.
In October 2025, S&P Global assigned Strategy a 'B' credit rating but noted potential upgrades if the company improves its USD liquidity, reduces convertible debt, and demonstrates strong capital market access during Bitcoin downturns.
Financial Performance
In the last three weeks, Strategy raised nearly $4 billion, increasing its Bitcoin holdings to 671,268 coins and expanding its reserve fund. However, Strategy's MSTR shares were sold to boost the USD reserve. Both MSTR and Bitcoin are on track to end the year in the red, with Bitcoin dropping 5% to $88k and MSTR falling 43% from its 2025 high.
Final Thoughts
- Strategy scaled its USD reserve fund to $2.19 billion, covering 31 months of dividend obligations tied to its preferred stocks.
- The likelihood of liquidating its Bitcoin remains low due to the reserve fund's establishment.