The cryptocurrency giant MSTR has increased its cash reserves to $2.2 billion, and there are already strategies in place for the convertible bonds maturing in 2027.

[Chain News] This publicly listed company is indeed a Bitcoin giant. The latest data shows that MSTR has piled up its USD reserves to 2.2 billion, enough to cover various payments for the next two and a half years. In simple terms, it's to guard against the market turbulence that may arise from Bitcoin's four-year cycle.

Monday's stock financing brought them $748 million in ammunition. This cash not only alleviates short-term liquidity pressure but also allows the company to maintain a steady operational pace during periods of significant market volatility. The funds are mainly directed to two areas: firstly, approximately $824 million in annual preferred stock dividends, and secondly, the repayment of the $1 billion convertible bonds maturing in September 2027.

Regarding convertible bonds, there are some details worth noting here. The current price of MSTR stock is around $163, while the conversion price of the convertible bonds is set at $183. There is nearly a 12% difference between the two. If the stock price does not reach the conversion price at maturity, the company will cash out directly; otherwise, it will settle in equity. However, based on the current cash reserves, this is not a problem at all – they still hold more than 670,000 BTC, and using a small portion of that can easily resolve it.

The company's Chief Risk Officer, Jeff Walton, also confirmed this: the existing cash reserves can fully cover the convertible bond redemption in 2027 and provide an additional 15-month buffer for preferred stock dividends. Although MSTR's stock price has dropped nearly 45% this year, the strengthening of cash reserves has actually made their financial foundation more stable. This series of moves can be seen as a vote of confidence in the long-term prospects of Bitcoin with real money.