July 22 Cryptocurrency | Strategy Can Cover 31 Years of Preferred Stock Dividends with Bitcoin Reserves

On the 20th, the publicly traded company Strategy announced that its Bitcoin reserves could cover 31 years of preferred stock dividends.

The Relationship Between Bitcoin Reserves and Dividends

Strategy is known as one of the largest corporate holders of cryptocurrency. As of the 19th, the company holds 843,775 Bitcoins (BTC).

At the same time, it added approximately $225 million in USD reserves, bringing the total to about $3.2 billion.

Chaitanya Jain, the head of Strategy, explained the current status of the reserves on the 20th.

According to his calculations, the Bitcoin reserves held are equivalent to 31 years of preferred stock dividends, and the USD reserves alone can cover about 1.8 years of dividend obligations.

Michael Saylor, the founder and chairman of Strategy, also emphasized this figure on social media.

The company's USD reserves are subject to a rule that they can only be used for preferred stock dividends and debt interest payments. This mechanism acts as a buffer in case of a sharp market decline.

By demonstrating the ability to pay dividends for decades ahead, the company aims to dispel market anxieties and is gaining attention as a case of using cryptocurrency as a long-term reserve asset.

Corporate Bitcoin Strategy and Market Impact

In mid-July, Strategy temporarily postponed additional Bitcoin purchases and allocated all funds from its stock sales to USD reserves.

This move is a tactical decision to secure liquidity for preferred stock dividends. It aims to reduce the risk of forced cryptocurrency sales and enhance trust among stakeholders.

The average acquisition cost of the Bitcoins held by the company is about $75,476 (approximately ¥12,302,588), amounting to a substantial total.

Currently, it faces an unrealized loss of about $9 billion (approximately ¥1.467 trillion) at market prices, but it has not wavered in its stance of maintaining cryptocurrency as a core financial asset.

Strategy's holdings account for about 4% of the total Bitcoin supply of 21 million coins. The company's indication that it will not sell has provided a certain sense of reassurance to market psychology.

The strategy of utilizing Bitcoin as a long-term store of value while tolerating short-term price fluctuations could influence other types of cryptocurrencies and the overall market.

New Layer 2 Technology Expanding Bitcoin's Potential

While the movement to utilize Bitcoin as a store of value spreads, projects that expand the Bitcoin network itself and evolve it into a practical platform are gaining significant attention.

At the forefront is BitcoinHyper, a Layer 2 project specialized in Bitcoin.

Bitcoin Hyper dramatically improves the processing speed of Bitcoin, which has been a challenge, by leveraging Solana's virtual machine, enabling fast and low-cost transactions.

This allows for the construction of decentralized finance (DeFi) and dApps on the Bitcoin network. It is a groundbreaking mechanism that promotes the evolution from a mere payment method to a programmable platform.

Furthermore, Bitcoin Hyper is generating buzz for combining the approachability of meme coins with the technical prowess of a serious infrastructure.

In the ongoing cryptocurrency presale, it has already raised over $32 million, with more than 1.3 billion tokens staked, indicating high expectations from investors.

The mainnet launch and exchange listing are scheduled for the third quarter of 2026, holding the potential to become a focal point in the future cryptocurrency market.

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