• MicroStrategy has established a $1.44 billion cash reserve, funded by ATM share sales, to cover 21 months of preferred stock dividends and debt interest.
  • The company now holds approximately 650,000 bitcoins, representing about 3.1% of the total supply, acquired at an average cost of $74,436 per bitcoin.
  • Recent purchases of 130 bitcoins for $11.7 million in late November signal a continued, albeit measured, accumulation strategy.

In a move to fortify its balance sheet against the volatility of its core treasury asset, MicroStrategy has quietly built a $1.44 billion cash reserve. According to a recent filing, the reserve is specifically earmarked to cover dividends on its preferred stock and interest on its corporate debt, providing a significant runway of approximately 21 months for these fixed obligations. The capital was raised through at-the-market (ATM) offerings of its Class A shares, a mechanism the company has deftly utilized throughout 2025 to fund its strategic initiatives.

Chief Executive Phong Le, in recent discussions with analysts, framed the reserve as a prudent step to ensure operational stability. “Our focus remains on our dual strategy of growing our enterprise analytics business and acquiring and holding bitcoin,” Le said, according to people familiar with his comments. “This reserve provides us with clear visibility and confidence in meeting our obligations to preferred shareholders and debt holders, irrespective of near-term bitcoin price movements.” The company did not immediately respond to a request for further comment on the timing of the ATM sales.

The creation of the reserve comes as MicroStrategy navigates a broad earnings guidance for the fiscal year, projecting operating income anywhere from a loss of $7 billion to a gain of $9.5 billion—a range that underscores the profound impact of fair value accounting for its bitcoin holdings. The new accounting standards, implemented in 2025, have introduced significant earnings variability, making the predictability of cash flows for fixed payments a paramount concern for management and investors alike.

MicroStrategy’s bitcoin treasury, now standing at 650,000 coins following a $11.7 million purchase of 130 bitcoins between November 17 and 30, remains the cornerstone of its financial strategy. The recent acquisitions were executed at an average price of $89,960 per bitcoin, above the company’s lifetime average cost basis of $74,436. This disciplined, incremental buying, even at elevated prices, reflects a long-term conviction that has defined the company’s approach since it began its aggressive accumulation in 2020.

Market observers note that the sizable cash buffer effectively de-risks the income stream for preferred stockholders, a class of investors that has become increasingly important as MicroStrategy leverages its bitcoin-collateralized debt. The company has raised nearly $20 billion in capital this year through a combination of equity, convertible notes, and other structured instruments, a testament to capital markets’ continued receptiveness to its unique corporate thesis. The reserve acts as a bridge, ensuring these financial engineering efforts are not undermined by a temporary downturn in digital asset prices.

Correction: An earlier version of this article misstated the timeframe covered by the cash reserve. It is sufficient for 21 months of obligations, not 24 months.