U.S. Stock Movement | Strategy (MSTR.US) Drops Over 4% Pre-Market as Bitcoin Briefly Falls Below $85K

Stock News
Dec 01

On Monday, Strategy (MSTR.US) declined over 4% in pre-market trading to $169.26. The drop followed Bitcoin's brief dip below the $85,000 mark and comments from Bank of Japan Governor Kazuo Ueda hinting at a potential rate hike this month, which pushed Japan's 30-year, 10-year, and 2-year government bond yields to their highest levels since 2008.

To stabilize market sentiment, Strategy announced the establishment of a $1.44 billion USD reserve fund, specifically allocated for preferred stock dividends and existing debt interest payments. The reserve is funded through proceeds from the company's market-based issuance plan for Class A common stock.

Strategy plans to maintain reserves covering at least 12 months of dividend obligations, with a gradual expansion target to build a buffer capable of supporting 24 months or more of payments. The fund's existence, terms, and size remain entirely at the company's discretion, with adjustments based on market conditions, liquidity needs, and other factors.

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