Strategy has reinforced its Bitcoin strategy with a fresh 130 BTC purchase and a new $1.44 billion cash reserve aimed at securing dividends and boosting investor confidence.
Key Takeaways
- Strategy bought an additional 130 BTC for $11.7 million, bringing its total holdings to 650,000 BTC, worth around $56 billion.
- The company created a $1.44 billion USD reserve to cover at least 21 months of dividend and debt payments.
- The reserve was funded by selling 8.2 million MSTR shares, raising nearly $1.48 billion.
- Strategy also revised its 2025 financial targets downward, acknowledging Bitcoin’s current market slump.
What Happened?
Strategy, the world’s largest public holder of Bitcoin, has deepened its crypto commitment with a dual move: adding 130 BTC to its treasury and launching a massive $1.44 billion cash reserve. The announcement follows a turbulent period for crypto markets, with Bitcoin experiencing its steepest monthly drop since 2021.
$MSTR announces the formation of a $1.44 billion USD Reserve and an increase in its BTC Reserve to 650,000 $BTC. pic.twitter.com/e1tAhDUo9G
— Michael Saylor (@saylor) December 1, 2025
Bitcoin Buys Continue Despite Market Slump
Despite Bitcoin’s price volatility and a sharp recent decline, Strategy went ahead with another purchase, adding 130 BTC for approximately $11.7 million. This latest acquisition pushed its total Bitcoin holdings to 650,000 BTC, bought at an average price of $74,436, totaling $48.4 billion including fees and expenses.
This cache represents over 3% of Bitcoin’s total supply, securing Strategy’s place as the dominant corporate holder of the digital asset. At current market rates, the company holds around $7.6 billion in unrealized profit.
$1.44B USD Reserve: A Liquidity Lifeline
To guard against financial instability and assure stakeholders, Strategy has established a $1.44 billion U.S. dollar reserve. Funded through recent at-the-market sales of MSTR Class A shares, the reserve is designed to cover dividend payments on preferred stock and service debt for at least 21 months, with a goal of expanding it to 24 months.
In an official filing, the company stated:
CEO Phong Le said the move helps reduce the likelihood of ever needing to sell any Bitcoin, a key reassurance after recent concerns were sparked by his earlier comments. Michael Saylor, Executive Chairman and the public face of Strategy’s Bitcoin campaign, called the reserve the “next step in our evolution” as a digital credit powerhouse.
Financial Pressure and Revised Outlook
The company also updated its financial outlook for 2025. Previous assumptions based on a $150,000 Bitcoin price have been significantly lowered. New guidance expects:
- BTC price range: $85,000 to $110,000 by year-end
- BTC yield projection: 22% to 26%
- Operating income: Between a $7 billion loss and $9.5 billion profit
- Net income: From a $5.5 billion loss to $6.3 billion profit
- EPS (Earnings Per Share): Between -$17 and +$19
These figures reflect new accounting standards and the impact of Bitcoin’s volatile market conditions.
Investor Jitters and Market Context
The timing of the reserve announcement appears to be a direct response to mounting investor anxiety. On Monday, Bitcoin dropped more than 6% to trade in the mid $84,000s, with Strategy shares also sliding over 6% before recovering slightly post-announcement.
The company’s market value to Bitcoin ratio (mNAV) dropped to 1.2, approaching a red-flag zone. Phong Le had earlier noted that a fall below 1.0 could force a Bitcoin sale, though only as a last resort.
Despite challenges, analysts believe Strategy remains structurally sound. Wall Street estimates suggest that Bitcoin would need to fall to $12,700 before triggering genuine solvency risk.
CoinLaw’s Takeaway
In my experience, this is a bold and calculated play by Strategy. The $1.44 billion cash reserve isn’t just about dividends. It’s about signaling strength when the market wobbles. Saylor is betting that by combining deep BTC reserves with a solid USD buffer, Strategy can ride out short-term volatility without selling a single satoshi. I found the revised projections refreshingly realistic, a sharp pivot from overly bullish forecasts. This kind of transparency is what helps keep institutional confidence alive, even when Bitcoin is bleeding.
