Strategy Expands Financial Buffer Against Forced Bitcoin Sales

The American bitcoin company Strategy has increased its dollar reserves and available cash, now having enough for 3.4 years of interest and dividend payments. This is an improvement compared to August, when the coverage was approximately 2.6 years. Despite selling around 388 million euros worth of Bitcoin this year, nearly double the amount sold mid-year, a drop in the bitcoin price does not automatically lead to a forced sale. The bitcoin inventory was not used as collateral for outstanding debts at the end of June, meaning a lender cannot automatically sell the coins at a certain price drop. Strategy can choose which funding source to use, but warns that its software activities alone are not enough to cover all obligations. The main risk remains access to new funds; a prolonged decline in the stock could make issuing new shares less attractive, which could shrink the buffer and bring a new sale of Bitcoin closer. The current figures make an emergency sale in the short term less likely, but the coverage of 3.4 years needs to be reassessed in the next quarterly figures.

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