Michael Saylor highlighted on Wednesday that Strategy Inc. (NASDAQ: MSTR) now has more "Total Reserve Capital" than any other financial-services company in the S&P 500 index except Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK).
Strategy Flexes Its Reserve Capital’
Saylor posted a chart on X, showing Berkshire Hathaway sitting on a Total Reserve Capital of $364 billion, followed by Strategy at $66 billion
Total Reserve Capital is Strategy’s own metric, calculated as reserve assets, including “unrestricted cash and marketable securities,” minus senior claims—such as outstanding debt obligations and preferred stock liquidation preferences.
In Strategy’s case, the reserve mostly consists of the total value of Bitcoin held on its balance sheet and its dollar assets
“Our ambition is to hold the most capital,” Strategy said in a post that Saylor quoted.
Strategy’s Steps to Bolster Balance Sheet
Strategy currently holds 845,050 BTC, worth $65.79 billion, making it the world’s largest corporate holder of the apex cryptocurrency.
The company holds approximately $6.71 billion in total dollar assets, with $5.1 billion set aside as a corporate safety net to cover interest on outstanding debt and preferred stock dividends.
In June, Strategy introduced a Digital Credit Capital Framework that includes up to $1.25 billion in BTC monetization capacity, allowing the company to convert Bitcoin into dollars to build its reserve, fund dividends and debt interest, and support eligible repurchases.
Strategy subsequently sold portions of its Bitcoin holdings as it built up dollar liquidity, adding to potential selling pressure in the cryptocurrency market.
The company ended a two-month buying drought after acquiring 4,603 BTC at an average price of $80,318 per coin last week.
Price Action: At the time of writing, BTC was exchanging hands at $77,338, up 0.35% in the last 24 hours, according to data from Benzinga Pro.
Strategy shares were up 0.12% in pre-market trading after closing 1.35% lower at $123.19 during Wednesday’s regular trading session.
Benzinga’s Edge Stock Rankings show MSTR has a stronger price trend in the short term, but trails over the medium- and long-term horizons.
Photo courtesy: Shutterstock
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