Bitcoin News: Strategy Has $5.1 Billion in Cash to Cover 3.4 Years of Dividends. Could It Have to Sell Bitcoin Again?
Strategy holds nearly $70 billion in Bitcoin while its stock slides and preferred dividends pile up, raising a question that could rattle crypto markets: how long before the company faces pressure to sell its prized holdings?
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Strategy Inc. (NASDAQ: MSTR | MSTR Price Prediction) reported cash reserves of $5.1 billion, enough to cover dividends and interest payments for the next 3.4 years without selling any Bitcoin. Executive Chairman Michael Saylor shared on X on October 26, 2026, that the company holds 848,517 Bitcoin (CRYPTO: BTC), valued at about $67.5 billion, along with $5.1 billion in cash as of October 25.
Saylor announced, “Strategy has repurchased $205M of $STRC. As of 10/25/26, we hold 848,517 $BTC and $5.1B of USD Assets.” STRC refers to one of Strategy’s preferred stocks, which pays a fixed dividend to its holders before common shareholders receive any dividend.
Despite this promising news, investor reactions were mixed. On October 26, the value of Strategy’s shares fell by 5.8%, settling around $138. Meanwhile, Bitcoin is trading at $79,560 after Bitcoin ETFs posted their largest outflow since June, putting it about 37% below its record high of $126,080.
Saylor Outlines Cash Coverage for 3.4 Years of Payments
Saylor detailed that the cash reserve can cover its obligations for 3.4 years. Those obligations are large, as Strategy paid $400.7 million in preferred dividends in the second quarter alone, a figure that can escalate with each new stock issuance. He also noted that “USD Duration is 3.4 yrs and STRC’s BTC Credit is 54 bps assuming 10% BTC ARR, 40% BTC Vol, and a BTC price of $81,200.”
The USD Duration reflects how long the reserves can sustain dividend payments, while BTC Credit indicates how well Strategy’s Bitcoin assets safeguard STRC holders.
Strategy’s Bitcoin holdings remained unchanged from its October 19 filing, indicating no new Bitcoin purchases in the week leading up to October 25. The week before, the company bought 250 BTC, roughly $20 million at today’s prices, and repurchased $192 million of STRC shares. Saylor did not disclose details about cash reserves or annual dividend obligations.
Strategy’s Cash Reserve Has Grown Since Q2, but Its Bills Are Large
The company’s cash reserves have increased from $3.75 billion in Q2, enough to cover just over 2.1 years of payments. However, the company’s obligations are also significant. Its convertible debt totals $6.7 billion, and it posted a net loss of $8.22 billion in Q2, primarily from an $8.32 billion unrealized loss on its Bitcoin holdings, recorded when the price declines.
Has Strategy Sold Bitcoin This Year?
Strategy has a history of selling Bitcoin, having monetized $218.4 million through Q2, with board approvals for sales up to $1.25 billion to bolster cash reserves.
For a forced sale to occur, three factors must align: cash reserves must deplete, Bitcoin prices must drop significantly enough to challenge cash flow, and capital markets must close off funding opportunities. In Q2, capital markets were accessible, allowing Strategy to raise $8.41 billion through its at-the-market program, which involves gradually selling new shares.
Despite this, Strategy’s Bitcoin acquisitions have slowed as share buybacks took precedence, dropping from 250 BTC purchases to none within a week, while STRC share repurchases rose to $205 million. Strategy’s shares have fallen 51.7% over the past year, meaning each new share sale raises less money—diluting existing shareholders more.
Could Strategy Need to Sell Bitcoin Again?
At this point, a forced sale appears unlikely. With enough cash to cover 3.4 years, Strategy can maintain its dividend payments without needing to liquidate Bitcoin. However, a voluntary sale remains possible, given board approval and the company’s prior Bitcoin sales. For MSTR shareholders, not selling Bitcoin may require more share sales, which yield decreasing returns as the stock price continues to drop.
Strategy is anticipated to announce its Q3 results after the market closes on October 29. If the upcoming report shows Bitcoin sales exceeding the previously reported $218.4 million or USD Duration below 3.4 years, selling could increase further.
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Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
