Strategy Builds $4.75B Cash Reserve as Bitcoin Strategy Evolves

Strategy, the largest corporate holder of Bitcoin, is expanding beyond a simple BTC accumulation vehicle by building a $4.75 billion cash reserve to support its preferred-stock and digital credit ambitions. CEO Phong Le said the cash balance, equal to about 2.7 years of dividend coverage, reflects feedback from institutional investors who value dollar liquidity over Bitcoin when assessing short-term capital products. The company is launching preferred stock offerings such as STRC to provide Bitcoin-linked exposure with lower volatility than direct BTC or common stock ownership. Strategy aims to become a broader digital finance platform, comparing its goal to being the “JP Morgan of digital finance.” The firm still holds about 840,000 BTC, or roughly 4% of Bitcoin’s 21 million supply, while its legacy software business also showed momentum with 7% year-over-year revenue growth and 54% cloud subscription growth.