Strategy 14.4 billion USD reserve plan: Ensure shareholder dividends, no BTC sales in the next 21 months?

Strategy recently announced that it has allocated $1.44 billion from the proceeds of selling Class A common stock specifically for a reserve to pay dividends and interest. This move aims to alleviate market concerns about the company potentially being forced to sell its holdings of Bitcoin to meet future cash needs.

For investors paying attention to platforms like Gate, this move reveals that leading companies in the cryptocurrency industry are adopting more conservative and sustainable financial strategies to cope with the uncertainty brought about by price fluctuations of assets like Bitcoin, and to ensure that their commitment to shareholder returns is not affected by market volatility.

01 Financial Cornerstone: Strategic Significance of $1.44 Billion Reserves

The latest established reserve of $1.44 billion is not just a financial figure, but a strategic defensive fortress.

According to the company's statement, this fund is expected to be sufficient to support at least 21 months of dividend payments. In the context of significant volatility in the cryptocurrency market, this kind of “preparedness” provides rare certainty for the company's shareholder return plan.

This initiative directly addresses a long-standing concern in the market: when a company needs cash to pay dividends, will it be pressured to sell its Bitcoin holdings at an inopportune time? By establishing an independent dollar cash reserve, the company has successfully isolated its daily operations from its core asset strategy holdings.

From a broader industry perspective, the approach of Strategy sets a benchmark for financial management for other cryptocurrency companies. It conveys a clear message: even in an emerging and highly volatile industry, prudent capital management and a transparent commitment to shareholders remain key pillars of long-term corporate value.

02 Tax Optimization: Why Holding Dollar Reserves is More Advantageous than Bitcoin

The strategy of choosing to establish a dollar reserve instead of solely relying on Bitcoin assets to pay dividends is based on profound tax and regulatory considerations.

The recent policy clarification by the U.S. Department of the Treasury has provided key context for this. According to the latest guidance, businesses can exclude unrealized gains and losses from digital assets when calculating their adjusted financial statement income. This means that companies only need to pay taxes on these gains when they actually sell or exchange their cryptocurrencies.

This policy change addresses a long-standing concern in the industry: taxing on paper gains may force companies to sell crypto assets in a down market to pay potential tax bills.

For companies like Strategy that hold a large amount of Bitcoin, this tax rule means:

• Holding Bitcoin assets does not immediately incur a tax burden;
• However, if you need to sell Bitcoin to obtain cash to pay dividends, it will trigger capital gains tax;
• Establishing a cash reserve in USD in advance can prevent the need to sell Bitcoin at an unfavorable time to meet cash demands.

This strategy complies with the latest tax regulations while maximizing the protection of the company's core asset value.

03 Industry Insights: How the Reserve Fund Model Reshapes Crypto Investment Logic

The $1.44 billion dividend reserve of Strategy is jointly reshaping the investment logic of the cryptocurrency industry.

Traditional views often associate cryptocurrency companies with high growth and high volatility, while shareholder returns are seen as a secondary consideration. However, as the industry matures, leading firms are beginning to demonstrate more balanced capital allocation strategies.

The significance of this trend for investors is:

Reduce portfolio volatility: Cryptocurrency companies with stable dividend policies can provide a certain yield buffer for the portfolio, especially during market downturns.

Enhancing the appeal of long-term holding: Predictable shareholder returns increase the attractiveness of holding these assets long-term, rather than just for short-term trading.

Industry Maturity Indicator: Conservative financial management and a commitment to shareholder returns signify that the cryptocurrency industry is transitioning from a wild growth phase to a more mature and regulated development stage.

For users and investors on platforms like Gate, these changes mean that their participation in the cryptocurrency ecosystem is becoming more diversified – not only can they gain capital appreciation through trading and investing, but they can also obtain a continuous cash flow return by holding platform-related assets.

Future Outlook

The newly established $1.44 billion dividend reserve has taken prudent financial management to new heights.

While maintaining the momentum of business growth, a solid financial foundation and transparent return policies can build a strong “breakwater” for investors in a volatile market. When the waves of cryptocurrency rise and fall, the truly solid value anchors may be these seemingly conservative yet most sustainable financial commitments.