Executive Chairman Michael Saylor of Strategy Inc. said Monday that its modeled dollar assets covered 3.4 years of interest and preferred dividends, down from 3.5 a week earlier.
He also put BTC Credit for STRC, Strategy's variable-rate perpetual preferred stock, at 53 basis points, up from 52 a week earlier. The Oct. 19 post used $81,468 as its Bitcoin (BTC) reference price and modeled a 10% annual return with 40% volatility.
Strategy's notes say BTC Credit is calculated from assumptions about Bitcoin risk. The company sets Market Spread using STRC trading data. The figure expresses Strategy's own model and should not be mistaken for a rating issued by an outside credit agency or for STRC's observed market spread.
Strategy's notes define USD Duration as a coverage ratio between its dollar assets and one year of interest and preferred dividend costs. For that calculation, the firm treats the USD Reserve as dedicated to those costs and does not account for competing uses, such as convertible debt maturities.
In an Oct. 19 filing, Strategy listed a $4.83 billion USD Reserve and $447.3 million in USD Cash as of Oct. 18, totaling about $5.3 billion. Under the company's definition, USD Cash excludes money held for ordinary operating needs.
The filing showed $193.1 million in USD Cash was used to repurchase STRC shares from Oct. 12 through Oct. 18; the $447.3 million figure is the cash balance reported at the period's end. The company also used $45.5 million from its reserve to pay preferred dividends.
The board raised its authorization to repurchase digital credit securities to $3 billion from $2 billion. Strategy said $1.16 billion was available under the program after giving effect to the increase announced Oct. 19.
Strategy is scheduled to release third-quarter results Oct. 29 after U.S. markets close.
