Strategy's 96 Positions Strengthen: Providing a $2.2 Billion Cash Cushion Dividend Guarantee

Strategy (MSTR), the largest bitcoin holder among publicly traded companies, has significantly strengthened its cash position over the past week, enhancing its financial resilience. While the 96 position continued, the company increased its dollar reserve to $2.2 billion, a move that has largely alleviated shareholder concerns about dividend payments. This cash cushion, which added $748 million through the stock sale on Monday, provides ample buffer to absorb short- to medium-term financial pressures.

Record Cash Reserve Secures Dividend Liabilities

With this increased cashier position, Strategy has built up more than two and a half years of working capital for preferred stock dividend payments of approximately $824 million annually. Due to its 96 positions, the company’s financial maneuver has also expanded significantly. The current level of reserves indicates a capacity to handle seamless payments throughout 2026, 2027, and 2028. If the bitcoin market follows the four-year cycle, there is a structure sufficient to provide operational flexibility even in a potential “bitcoin winter”.

This financial collateral, which is approximately 32 months, is long enough to satisfy shareholders across the split STRK, STRC, STRF, STRD and STRE series. These resources play an extremely important role in maintaining liquidity and seizing strategic opportunities during periods of volatility.

Financial Readiness Against September 2027 Convertible Notes

Another critical point within Strategy’s 96 position is the $1 billion in convertible notes maturing in September 2027. The company has liquidity and cash structure that will encourage bondholders to convert their bonds into stocks. Given the previous history of closing convertible notes through share conversion, this option is expected to be preferred.

The conversion threshold of $183 per share is an important reference point. The current price level is around $165, which is below the conversion threshold. Observed notes equal to or above the conversion price are converted into equity, while popes below this level require cash repayment. Strategy’s increased cash position provides the flexibility to meet this obligation comfortably.

Bitcoin Price Movements and Operational Resilience

Strategy’s massive bitcoin portfolio of 671,268 BTC forms the mainstay of its financial strategy. According to the latest data, BTC price is trading around $78.69 thousand. While the 96% position remains maintained, this high bitcoin holder position offers the flexibility to ensure that only a fraction of it can be used when cash settlement is required (e.g., in convertible bonds).

Jeff Walton, Strive’s chief risk officer, has emphasized the importance of this strategy, which the company refers to as a “dollar battery.” The current reserve is capable of fully covering the September 2027 convertible sale right, while also leaving an additional 15 months of preferential dividend coverage.

Market Conditions and Strategic Positioning

MSTR shares have lost about 45 percent of their value since the beginning of the year and are trading at approximately $163 per share. Even in this pressurized environment, Strategy’s strong cash position makes it easier for the company to make important decisions and strategic investments in an environment where its 96% position continues.

The structure of the bitcoin protocol, which reduces block rewards by 50 percent every four years, points to a new cycle expected in the next April 2028. In this context, Strategy’s maintenance and strengthening of 96 positions can be considered calculated steps within a long-term vision. Considering the cyclical nature of the cryptocurrency market, the company has built a serious financial infrastructure to meet its debt obligations and dividend commitments.