Strategy Boosts USD Reserve Fund to $2.19 Billion – Is This Enough to Alleviate Insolvency Concerns?

Michael Saylor has positioned Strategy to avoid potential risks associated with insolvency concerns by expanding its USD reserve fund significantly. This move is aimed at addressing the company's dividend obligations and stabilizing its financial standings as the market continues to evolve.

Key Takeaways

Strategy has increased its USD reserve fund by $748 million, bringing the total to nearly $2.2 billion.
The reserve fund will help fulfill short-term dividend obligations related to preferred stocks used to purchase Bitcoin.
Despite a high likelihood of exclusion from the MSCI index, the risk of having to sell Bitcoin holdings is low due to the new reserve fund.
Analyst opinions suggest that improving dollar liquidity could positively impact Strategy's credit rating from S&P Global.

Strategy increases USD reserve fund to $2.19B - Enough to clear ‘insolvency FUD?'

Strategy’s Expansion of USD Reserve Fund

Michael Saylor appears committed to maintaining Strategy’s Bitcoin holdings instead of selling them, thanks to the substantial growth of its U.S. Dollar Reserve. Recently, Strategy revealed an increase in its USD reserve fund by $748 million, bringing the total to nearly $2.2 billion. This fund, initially disclosed earlier this month, is intended to help meet dividend obligations associated with preferred stocks that Strategy utilizes for raising capital aimed at Bitcoin acquisitions.

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Community Reactions to Strategy's Financial Strategy

The newly bolstered $2.2 billion fund allows Strategy to cover its mid-term obligations for 31 months. However, a significant portion of its total $8 billion debt is due in three years, with the first payment coming up in 2028. Analyst James Van Straten believes this strategy effectively mitigates risks of MSCI exclusion and insolvency concerns. “This move will help set the record straight about insolvency fears. Nicely executed,” he stated.

Interestingly, data from predictions site Polymarket suggests that there’s still a 75% chance of Strategy being delisted from the MSCI index by Q1 2026. In contrast, the likelihood of the company needing to liquidate Bitcoin in the first half of 2026 is only around 17%, dropping to below 10% by Q1 2026.

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Analyst Insights and Ratings

Despite facing a substantial risk of exclusion from the MSCI index, the chances of being forced to liquidate its Bitcoin holdings are considered minimal due to the new USD reserve fund. Additionally, analyst Adam Livingstone connected these reserve fund updates to recommendations made by S&P Global.

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In October 2025, S&P Global assigned Strategy a ‘B’ credit rating but hinted that an upgrade could follow if the company improves its dollar liquidity, cuts convertible debt, and demonstrates robust access to capital markets during Bitcoin price drops.

Comparing MSTR and Bitcoin Performance

Over the past three weeks, Strategy has successfully raised nearly $4 billion, increasing its Bitcoin holdings to 671,268 coins and further expanding its reserve fund. However, it is vital to note that the recent capital raised involved selling shares of MSTR, which have significantly contributed to boosting the USD reserve fund.

Both MSTR and Bitcoin are expected to finish the year with losses, with Bitcoin decreasing 5% to $88,000. Meanwhile, MSTR has suffered a loss of approximately 43%, dropping from its 2025 peak of $457 to just $164.

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Conclusion

The recent adjustments made by Strategy to enhance its USD reserve fund may help alleviate concerns over insolvency and enhance its financial stability in a challenging market environment. As analysts monitor the company's movements, this strategic financial maneuver could prove essential in addressing investor confidence and securing its future in both the cryptocurrency sector and traditional financial markets.