Strategy's $1.44 Billion USD Reserve Targets Dividend Security and Financial Flexibility
Strategy Inc (NASDAQ: STRF, LuxSE: STRE) has just taken a major step to bolster its financial footing: the establishment of a USD Reserve totaling $1.44 billion. Designed to secure dividend payments on preferred stock and service existing debt, this reserve marks a strategic shift in how the company manages risk and capital in the volatile world of digital assets.
Funded through an at-the-market offering of class A shares, the reserve currently covers approximately 21 months of upcoming dividend payments—a move Strategy aims to extend to at least 24 months as part of its ongoing commitment to investors. "Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution, and we believe it will better position us to navigate short-term market volatility," noted Michael Saylor, Founder and Executive Chairman.
Dividend Coverage Extended Amid Commitment to Shareholder Returns
The newly announced reserve addresses short-term obligations while sending a strong message of stability to credit investors and shareholders alike. The intention: to continually adjust and strengthen the reserve based on liquidity needs and market conditions, offering a flexible shield against unpredictable swings in the cryptocurrency sector.
With this latest move, Strategy not only strengthens its liquidity but also aims to reassure investors as it continues its pursuit of becoming a world leader in digital credit and Bitcoin treasury management.
Bitcoin Holdings and KPI Targets Updated for a Volatile 2025
Currently, Strategy Inc controls 650,000 bitcoins, or about 3.1% of all bitcoin that will ever exist—cementing its place as a pivotal player in the global bitcoin ecosystem. In the same update, Strategy also revised its assumptions for 2025 guidance, driven by recent market volatility that saw bitcoin prices dip from $111,612 on October 30, 2025 to $80,660 on November 21, 2025.
The company now expects the year-end 2025 bitcoin price to range between $85,000 and $110,000. In tandem, updated operating and net income projections, as well as diluted earnings per share estimates, were shared based on this price outlook. Here’s a snapshot of these ranges and KPI targets:
| Metric | 2025 Guidance (BTC Price Range: $85,000–$110,000) |
|---|---|
| Operating Income (Loss) | $(7.0) billion to $9.5 billion |
| Net Income (Loss) | $(5.5) billion to $6.3 billion |
| Diluted EPS | $(17.00) to $19.00 per share |
| BTC Yield Target | 22.00% to 26.00% |
| BTC $ Gain Target | $8.40 billion to $12.80 billion |
Company Results Tied Directly to Bitcoin Volatility
It's important to note that these ranges assume additional capital raises, which would be used to further boost bitcoin holdings and support KPI goals. With updated accounting standards in place, all bitcoin holdings will be marked to fair value each period, creating a direct correlation between market prices and reported earnings. This leaves the company—and by extension, its investors—especially exposed to price swings in bitcoin.
Management warns that actual results may deviate substantially from the targets if bitcoin prices land outside the projected range by the end of 2025. In other words: Strategy's performance for the next fiscal year is inextricably linked to how the world's leading cryptocurrency behaves.
Investor Takeaway: A Strengthened Foundation, But Eyes on Bitcoin’s Price Path
Strategy Inc’s new USD Reserve is a calculated move to shield against short-term uncertainty and reinforce confidence in the firm’s long-term digital asset strategy. While dividend coverage looks secure for now, updated guidance underscores the outsized influence bitcoin price swings will continue to have on the company’s earnings.
For investors, this dual-reserve structure—USD for stability, BTC for upside—offers a unique mix of risk management and exposure. As year-end approaches, the true impact of these strategies will hinge on the price of bitcoin. For those keeping watch, the next big signal may come not from the company, but from the broader crypto market itself.
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