Michael Saylor’s Strategy, the world’s largest public Bitcoin holder, is creating a $1.44 billion US dollar reserve to support dividend payments on its preferred stock and interest on its outstanding debt.
Strategy on Monday announced the establishment of a US dollar reserve funded through proceeds from the sale of Class A common stock under its at-the-market offering program.
“Strategy’s current intention is to maintain a USD Reserve in an amount sufficient to fund at least twelve months of its dividends, and Strategy intends to strengthen the USD Reserve over time, with the goal of ultimately covering 24 months or more of its dividends,” the company said.
Alongside the launch of the reserve, Strategy disclosed an additional purchase of 130 Bitcoin (BTC) for $11.7 million, bringing its total holdings to a symbolic value of 650,000 BTC, acquired for $48.38 billion.
Primary means for funding dividends
According to the Strategy’s company update on Monday, its US dollar reserve will be the primary source of funding dividends paid to holders of its preferred stocks, debt and common equity.
The update details that the $1.44 billion reserve is 2.2% of Strategy’s enterprise value, 2.8% of equity value and 2.4% of Bitcoin value.
“We believe this improves the quality and attractiveness of our preferreds, debt and common equity,” Strategy said, adding that it raised $1.44 billion in less than nine trading days by selling its common A stock MSTR.
USD reserve to complement BTC holdings
“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution,” Strategy founder Saylor said, adding that the new financial tool will better position the company to navigate short-term market volatility.
Strategy CEO and president Phong Le highlighted that the company’s latest BTC purchase — made in the past two weeks — brings its total holdings to 650,000 BTC, or about 3.1% of the 21 million BTC that will ever exist.
“In recognition of the important role we play in the broader Bitcoin ecosystem, and to further reinforce our commitment to our credit investors and shareholders, we have established a USD Reserve that currently covers 21 months of dividends,” Le noted.
Related: Strategy will sell Bitcoin as ‘last resort’ if mNAV drops, capital is unavailable: CEO
Strategy lowers 2025 KPI targets
Alongside its reserve and 650,000 BTC holdings, Strategy has significantly lowered its KPI targets and corresponding assumptions for 2025 results.
According to the update, Strategy now expects its BTC yield to end the year between 22% and 26%, with a projected BTC price estimate of $85,000–$110,000 by Dec. 31.
The company has also significantly reduced its targeted BTC gains, cutting its previous expectation of $20 billion to a revised range of between $8.4 billion and $12.8 billion.
The revised target for operating income is between $7 billion and $9.5 billion, down from the originally projected $34 billion.
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