Michael Saylor's Strategy expands dollar reserve instead of Bitcoin

Core Insights - Michael Saylor's company, Strategy, increased its U.S. Dollar Reserve by $747.8 million, bringing the total reserve to $2.19 billion as of December 21 [1][2] - The company aims to maintain a cash reserve sufficient to cover at least 12 months of dividends, with plans to extend this to 24 months or more [3][4] - Strategy is facing potential delisting from the MSCI USA Index due to its significant digital asset holdings, which could impact its stock performance [5] Group 1: Financial Developments - Strategy's recent cash reserve increase was funded by the sale of its common stock [1] - The company did not purchase any Bitcoin last week, maintaining total holdings at 671,268 BTC valued at over $60 billion [2] - The cash reserve was initially created to support dividend payments and service debt obligations [3] Group 2: Strategic Goals - The cash reserve is intended to address Bitcoin volatility and ensure sufficient liquidity for payouts [4] - The company is working to maintain a modified NAV (mNAV) close to 1, indicating that its equity value aligns with its Bitcoin holdings [4] Group 3: Market Position and Risks - Strategy's stock was trading at $169.77, reflecting a 3% increase in pre-market hours [5] - Bitcoin's price increased by 2.5% in the last 24 hours, trading at $89,990.30 [5]