Strategy’s Bitcoin Holdings Reach 650,000 as It Sets $1.44B Reserve for Dividends

Michael Saylor’s software intelligence-turned-Bitcoin treasury firm, Strategy, has announced the acquisition of 130 BTC for $11.7 million, bringing its total holdings to a symbolic number of 650,000 BTC, worth $56.54 billion at current prices.

However, the biggest news of the day wasn’t the bitcoin buy, but the creation of a new $1.44 billion US dollar reserve to safeguard dividend payments on its preferred offerings and interest on its outstanding debt, according to a recent 8-K filing with the U.S. Securities and Exchange Commission (SEC).

This has calmed investor concerns that the world’s largest Bitcoin treasury firm might have to offload a portion of its holdings to support operations if the ongoing market weakness persists.

Strategy Announces $1.44 Billion Cash Reserve to Support Dividend and Interest Payments for 12 Months

Strategy announced on Monday that the company’s USD reserve was funded through sales of its Class A common stock, MSTR, under its at-the-market offering program over the past nine days. CEO Phong Le noted that the intent of the $1.44 billion is to support at least 21 months of dividend obligations, a minimum of 12 months.

The goal is to strengthen its liquidity position as bitcoin endures its steepest monthly decline since mid-2021. Ultimately, the fund aims to cover 24 months or more of dividend and interest payments. Strategy highlighted that the dollar reserve will be the primary funding source for dividends paid to holders of its preferred stocks, debt, and common equity.

The $1.44 billion reserve accounts for 2.2% of Strategy’s enterprise value, 2.8% of equity value, and 2.4% of its bitcoin value.

Strategy founder and executive chairman Michael Saylor said in the press release that establishing a USD reserve to “complement” the BTC reserve marks the next step in the company’s evolution. He noted that it puts the Bitcoin treasury giant in a “better position” to navigate short-term market volatility, while delivering its vision to be the “world’s leading issuer of Digital Credit”.

Strategy Adds 130 BTC to Growing Stockpile, CEO Hints at Bitcoin Sale as Last Resort to Support Operations

The company bought 130 BTC for $11.7 million on November 30, at an average price of approximately $89,960 per bitcoin. Its total holdings now stand at 650,000 coins, acquired at a total cost basis of $48.38 billion, with an average spend of $74,436 per BTC.

Its bitcoin stockpile now accounts for about 3.1% of the 21 million BTC that will ever exist.

The cash reserve announcement comes after Le said on last week’s episode of the “What Bitcoin Did” podcast that Strategy would sell a portion of its bitcoin holdings if its market cap to net asset value (mNAV) drops below 1 – meaning if the company is valued lower than the total value of its treasury assets. 

On Monday, this key metric measuring its enterprise value to bitcoin stockpile had slipped to 1.2, inching closer to a level that is concerning for investors. The CEO reiterated that Strategy would sell its BTC if mNAV dropped below the threshold, and only as a last resort.

Meanwhile, investors responded sharply to the latest bitcoin price drop, which sent MSTR down more than 6% during pre-market trade, while the apex crypto also fell by the same ratio. However, the stock managed to pare its losses following the USD reserve and BTC buy announcement.

Strategy’s main line of business is providing enterprise analytics software, specifically business intelligence and mobile software solutions. The software business, while generating revenue and cash flow, also funds its bitcoin acquisition strategy. However, this division does not generate sufficient free cash flow to cover dividend or interest payments, as BTC itself yields no income, unlike Ether (ETH) or Solana (SOL), which can be delegated on their native blockchains to generate staking rewards.

This led the company to develop a suite of digital credit products that are designed to leverage its bitcoins as collateral, creating new financial instruments for institutional investors. In 2025, Strategy launched several BTC-backed credit products, such as STRK (Strike), STRC (Stretch), STRF (Strife), STRD (Stride), and STRE, which are primarily used to fund its bitcoin purchases.

Strategy Lowers 2025 KPI Targets, Predicts Bitcoin to Trade Between $85,000 and $110,000 at Year-End

Alongside the new bitcoin buy and USD reserve announcement, Strategy updated its 2025 guidance, acknowledging that its October forecast that BTC would hit $150,000 by the end of the year is no longer realistic.

The company has significantly lowered its Key Performance Indicator (KPI) targets. As bitcoin currently trades between $80,660 and $111,612, Strategy now expects its year-end BTC yield to come between 22% and 26%, with a projected price estimate of $85,000 to $110,000 per coin.

It has also reduced its targeted bitcoin gains, cutting down from the previous expectation of $20 billion to a revised range between $8.4 billion and $12.8 billion for 2025. Under the new target, Strategy expects its operating income to range between $7 billion and $9.5 billion, down from the original projection of $34 billion.

Strategy projects its yearly income to fall between a $5.5 billion loss and a $6.3 billion profit, while the diluted earnings per share ratio (EPS) is expected to be anywhere between -$17 and +$19 per MSTR share.

At the time of writing, Bitcoin (BTC) is trading at $86,944 – up 0.81% in 24 hours. Meanwhile, Strategy (MSTR) closed Monday’s market session at $171.42 – up 4.22% on the day.

Also Read: Why XRP Down Today? Key Reasons Behind the Sudden Price Drop