Strategy Inc has announced the creation of a US dollar reserve worth $1.44 billion. The company also released updated assumptions for its FY 2025 earnings outlook and Bitcoin KPI targets. These updates reflect recent changes in Bitcoin’s trading price.
What Is the New $1.44 Billion USD Reserve?
The company has set up a USD Reserve to ensure it can pay dividends on preferred shares and handle interest on debt. This reserve was funded through the sale of Strategy’s Class A common stock under its at-the-market (ATM) program.
Strategy plans to:
- Maintain enough reserves to cover at least 12 months of dividends
- Gradually expand the reserve to cover 24 months or more
According to CEO Phong Le, the current reserve already covers 21 months of dividend payments. The company will adjust the reserve depending on market needs and liquidity conditions.
Why Did Strategy Create This Reserve?
Founder and Executive Chairman Michael Saylor says the reserve complements the company’s Bitcoin strategy and helps the firm navigate short-term market volatility. Strategy currently holds 650,000 BTC, which is about 3.1% of all Bitcoin that will ever exist.
Updated FY 2025 Bitcoin Price Assumptions
The company previously assumed Bitcoin would reach $150,000 by December 2025. However, Bitcoin dropped from $111,612 (Oct 30, 2025) to as low as $80,660 (Nov 21, 2025). Because Bitcoin is highly volatile, Strategy has updated its year-end price assumptions.
New Assumed Bitcoin Price Range for Dec 31, 2025:
- $85,000 (lower end)
- $110,000 (upper end)
Updated FY 2025 Earnings Guidance
Based on Bitcoin ending 2025 within the $85k–$110k range, Strategy expects:
| Metric | Expected Range |
|---|---|
| FY2025 Operating Income | $(7.0) billion to $9.5 billion |
| FY2025 Net Income | $(5.5) billion to $6.3 billion |
| Diluted EPS | $(17.0) to $19.0 per share |
Strategy notes that earnings are now more sensitive because Bitcoin is measured at fair value under the new ASU 2023-08 standard, meaning BTC price swings directly impact quarterly net income.
Updated FY 2025 Bitcoin KPI Targets
Assuming the same Bitcoin price range and accounting for future equity issuance to support the USD Reserve, Strategy expects:
- BTC Yield Target: 22.0% to 26.0%
- BTC Dollar Gain: $8.4 billion to $12.8 billion
The company plans to meet these BTC growth targets through preferred stock offerings, responsible common stock issuance, and ongoing Bitcoin accumulation.
MicroStrategy’s Valuation Falls Below Its Bitcoin Holdings
MicroStrategy’s stock has taken a sharp hit, dropping 12% today and 57% since October 6. The slump has pushed the company’s market value down to $45 billion, even though it holds 650,000 BTC worth about $55 billion.
That means the firm is trading $10 billion below the value of its Bitcoin stash. After accounting for its $8.2 billion in debt, MicroStrategy still has $46.8 billion in net Bitcoin, which is $1.8 billion more than its entire market cap, and this doesn’t even include its cash reserves.
In short, the company is currently valued less than the Bitcoin it owns, even on a net basis.
Why These Updates Matter
Strategy’s business model heavily depends on Bitcoin’s market value. Any major movement in Bitcoin’s price can significantly increase or decrease income. By creating a USD Reserve and updating its assumptions, the company aims to provide more stability for investors and offer clearer insights into future performance.
Key Takeaways
- Strategy has created a $1.44B USD Reserve to support dividend and interest payments.
- The company now holds 650,000 BTC.
- FY 2025 forecasts assume Bitcoin ends the year between $85k and $110k.
- Potential FY2025 net income ranges from –$5.5B to +$6.3B.
- BTC yield for FY2025 could reach up to 26%.
- Strategy purchased 130 BTC for ~$11.7M at an average of ~$89,960 each. As of Nov 30, 2025, the strategy now holds 650,000 BTC, accumulated for ~$48.38B at an average cost of ~$74,436 per bitcoin.
FAQ
Why did Strategy update its Bitcoin assumptions?
Bitcoin prices have become more volatile, falling from $111,612 to $80,660 within weeks. Updated assumptions give a more realistic outlook.
How will the USD Reserve help?
The reserve protects dividend payments even during Bitcoin downturns, improving financial stability.
Does Strategy plan to buy more Bitcoin?
Yes. The company expects to increase its Bitcoin holdings through stock offerings and raised capital.
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