Strategy Establishes a $1.4B Reserve While Expanding Its Bitcoin Stockpile to 650,000 BTC

Key Takeaways:

• Strategy has launched a $1.44 billion cash reserve to cover dividend payments.
• The firm purchased an additional 130 Bitcoin, bringing its total holdings to 650,000 BTC, or roughly 3.1% of the total supply.
• A weaker market outlook has prompted Strategy to significantly reduce its 2025 targets for Bitcoin yield and operating income.

On December 1, Strategy, the world’s largest public corporate holder of Bitcoin, announced the creation of a $1.44 billion USD Reserve. 

It was funded entirely through the sale of Class A common stock via an at-the-market offering program, representing approximately 2.4% of the total value of the company's Bitcoin holdings.

US Dollar Reserve Will Fund Dividends of Stockholders

The USD Reserve is designed specifically to cover dividend payments on preferred stock and interest on corporate debt. 

Company filings state the reserve is sized to cover a minimum of twelve months of dividend obligations, with a strategic goal to extend that coverage to twenty-four months. 

This buffer is intended to operate independently of Bitcoin's price volatility.

Concurrently, Strategy purchased an additional 130 Bitcoin for approximately $11.7 million, bringing its total holdings to the symbolic milestone of 650,000 BTC—about 3.1% of Bitcoin's total supply.

$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

Revised Outlook and Conditions for a Bitcoin Sale

Alongside these announcements, Strategy presented a downward revision of its 2025 financial targets.

The company now projects a Bitcoin yield of 22–26%, down from earlier estimates, anticipating a year-end Bitcoin price between $85,000 and $110,000.

This marks a noticeable pullback from earlier expectations. On October 29, Michael Saylor said the Bitcoin price could climb to $150,000 per coin within two months. That outlook no longer holds, and the company’s latest figures reflect the shift.

Accordingly, projected Bitcoin gains for the period were slashed from $20 billion to a range of $8.4–$12.8 billion, while the operating income target was lowered from $34 billion to $7–$9.5 billion.

This revised outlook raises a critical question: would Strategy ever sell Bitcoin? CEO Phong Le clarified the conditions on November 28. 

A sale would only be considered if two specific thresholds are met simultaneously: the stock must trade consistently below its modified Net Asset Value (mNAV), and the company must lose the ability to raise capital efficiently. 

Unless both conditions are present, selling is deemed an unlikely last resort, as the firm's model prefers to use equity raised at a premium to NAV for further Bitcoin accumulation.