Strategy Builds $1.44B Reserve as Bitcoin Holdings Hit 650K BTC
The world’s largest public Bitcoin holder has launched a major USD reserve while easing its 2025 targets and signaling new flexibility around potential BTC sales.
Strategy, the company led by Michael Saylor and known for its aggressive Bitcoin accumulation campaign, has launched a $1.44 billion US dollar reserve and added another 130 BTC to its treasury, bringing total holdings to 650,000 BTC. The move marks a new phase for the firm, which is now balancing its long-standing Bitcoin-maximalist strategy with a more traditional financial buffer to support dividends and debt obligations.
A Strategic Shift Toward Dual Reserves
Strategy announced that its newly created cash reserve was funded through proceeds from the sale of Class A common stock under its ongoing at-the-market offering. According to the company, the reserve will serve as the primary source for paying dividends on preferred stock and meeting interest commitments on outstanding debt.
In its statement, Strategy emphasized the size and intent of the reserve:
“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.
The $1.44 billion reserve equals 2.2% of the firm’s enterprise value, 2.8% of its equity value, and 2.4% of the value of its Bitcoin holdings, according to the update.
The company said it raised the full amount in less than nine trading days through sales of MSTR shares.
“We believe this improves the quality and attractiveness of our preferreds, debt and common equity,” Strategy said.
Saylor described the newly established USD reserve as a pivotal evolution:
“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution,” Saylor said, noting that the additional buffer will help the company manage short-term volatility.
Bitcoin Holdings Reach 650,000 BTC
While fortifying its fiat liquidity, Strategy continued expanding its Bitcoin reserves. The latest purchase of 130 BTC for $11.7 million pushes the company’s total holdings to a symbolic 650,000 BTC, acquired at a combined cost of $48.38 billion.
CEO and president Phong Le underscored the significance of reaching this milestone.
“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.
Strategy’s total holdings now represent roughly 3.1% of the total 21 million BTC that will ever exist.
Revised 2025 Targets Signal a More Cautious Outlook
Alongside the reserve announcement, Strategy also issued a substantial downward revision of its 2025 performance expectations.
Updated performance assumptions include:
- BTC yield for the year revised to 22%–26%.
- BTC price expectation projected at $85,000 to $110,000 by year-end.
- Targeted BTC gains slashed from $20 billion to a range of $8.4 billion–$12.8 billion.
- Operating income forecast reduced from $34 billion to $7 billion–$9.5 billion.
These adjustments indicate a more measured internal outlook compared to the company’s previous high-performance assumptions, which were set during a more bullish market environment.
Company Signals Openness to Selling BTC Under Stress Scenarios
In a separate video interview, Strategy acknowledged that selling Bitcoin may be possible under certain conditions. This marks a departure from its years-long “never sell” philosophy.
According to CEO Phong Le, the company would only consider selling Bitcoin if two events occur simultaneously:
- Strategy’s market-to-net-asset-value ratio falls below one, and
- The company is unable to raise new capital.
Le has emphasized that while he prefers not to be the executive who sells Bitcoin, financial discipline would take precedence in a hostile market. In such circumstances, reducing the BTC treasury could become mathematically justified to protect Bitcoin yield per share—especially if issuing new equity becomes more dilutive than selling a small fraction of holdings.
Peter Schiff’s Critique
The announcement quickly sparked online debate, particularly from long-time crypto critic Peter Schiff. Posting on X, Schiff argued that Strategy’s USD reserve marked a negative turning point: “the beginning of the end of $MSTR”.
Schiff also claimed that Strategy was “forced to sell stock not to buy Bitcoin, but to buy U.S. dollars”
to cover interest and dividend payments, calling the company’s financial model “broken”.
While Schiff’s comments reflect his long-standing skepticism of Bitcoin-centric corporate strategies, they also underscore broader market concerns about whether Strategy’s doubling-down on leverage and asset accumulation remains sustainable during periods of tightening liquidity or falling market multiples.
A New Phase in Strategy’s Bitcoin-First Identity
Strategy’s simultaneous buildup of a sizable USD reserve and softening of its forward-looking financial targets represents a nuanced shift in the company’s strategy. For years, the firm has operated as the most aggressive institutional buyer of Bitcoin, prioritizing accumulation above all else and portraying BTC as a superior long-term treasury asset. The creation of a fiat reserve suggests a more balanced approach—with Bitcoin remaining its central asset, but complemented by liquidity designed to smooth volatility, reassure credit investors, and support dividends without relying solely on stock issuance.
As Strategy moves toward 2025, the company appears to be positioning itself for a more complex market environment—one where resilience, optionality, and disciplined treasury management may matter as much as Bitcoin conviction.
