Strategy: Future capital allocation will dynamically adjust Bitcoin and US dollar reserves
2026-07-31 10:35:57
According to CoinMeta, Wu said that during the Q2 earnings call, Strategy stated that in the future, the funds raised by the company will no longer be used entirely for purchasing Bitcoin. Instead, they will be dynamically allocated between BTC and US dollar reserves to enhance the stability of the digital credit system. The company mentioned that it will still sell a small amount of Bitcoin when it is advantageous for them, to replenish US dollar reserves, pay preferred stock dividends and interest, and to support securities repurchases. It was also made clear that there are currently no plans to use Bitcoin for mortgage financing, due to reasons such as counterparty risk, margin risk, and the possibility of becoming a target for short selling. Management also expressed their desire to gradually reduce the scale of convertible bonds and maintain US dollar reserves at a level that can cover dividends and interest for about 2 to 3 years.
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