Strategy’s $4.6 billion cash buffer gives it almost 3 years before Bitcoin sales create real stress

Strategy said it held 840,447 BTC as of Aug. 9 and has begun treating its Bitcoin reserve as a source of balance-sheet flexibility.Michael Saylor said Strategy sold $108 million in Bitcoin and $653 million in MSTR shares to increase its dollar reserve by $650 million, and repurchased $109 million of STRC, its variable-rate preferred stock.The timing aligns the three moves without proving that each dollar from the Bitcoin sale directly funded the repurchase. Strategy is also willing to convert a small portion of its BTC into liquidity while supporting a capital structure whose dividends and interest are measured in dollars.The success of Strategy's Bitcoin experiment now depends on preserving enough flexibility to meet dollar obligations while retaining control over when and how much Bitcoin it sells.Bitcoin becomes a managed reserveSaylor said in an Aug. 3 post that his personal “never sell” position did not bind Strategy, a public company that has disclosed since 2020 that it may buy or sell Bitcoin to manage capital.A Bitcoin holder can measure success solely by the number of coins retained, while Strategy also tracks how long its cash can cover dividends and interest across its ...