Strategy has created a new cash reserve funded through stock sales to cover at least twelve months of dividend payments, while continuing to expand its Bitcoin holdings to 650,000 BTC amid ongoing market volatility.
Michael Saylor’s Strategy — the largest publicly traded holder of Bitcoin — announced the establishment of a $1.44 billion U.S. dollar reserve. The reserve will support dividend payments on preferred shares and interest on outstanding debt.
The company said the reserve was funded through proceeds from the sale of Class A common stock under its at-the-market offering program. Strategy noted that its intention is to maintain a reserve large enough to fund at least a year of dividends, with a long-term goal of building coverage for 24 months or more.
Alongside the new reserve, Strategy reported another Bitcoin purchase: 130 BTC acquired for $11.7 million. This brings total holdings to 650,000 BTC, purchased at a combined cost of $48.38 billion.
Reserve becomes primary source for dividends
According to Strategy’s update, the newly formed USD reserve will serve as the main funding source for dividends paid to preferred shareholders, as well as servicing debt and common equity obligations.
The company detailed that the $1.44 billion reserve represents 2.2% of its enterprise value, 2.8% of equity value, and 2.4% of its Bitcoin portfolio. Strategy said it raised the full amount in under nine trading days through sales of its Class A common stock.
USD reserve complements Bitcoin strategy
Founder Michael Saylor stated that adding a USD reserve marks a key evolution in the company’s financial structure, creating greater stability during periods of heightened market volatility.
CEO Phong Le added that the latest Bitcoin purchase — completed over the past two weeks — lifts the company’s holdings to 650,000 BTC, or roughly 3.1% of all Bitcoin that will ever be mined. Le said the new reserve currently covers 21 months of dividend payments, reinforcing Strategy’s commitment to creditors and shareholders.
Lowered performance targets for 2025
In the same update, Strategy revised several of its key performance targets for 2025. The firm now expects its Bitcoin yield to finish the year in the 22%–26% range, with an estimated BTC price between $85,000 and $110,000 by year-end.
Strategy also cut its projected Bitcoin gains significantly, reducing the earlier $20 billion target to a narrower estimate of $8.4 billion to $12.8 billion. Expected operating income was likewise lowered, with new projections between $7 billion and $9.5 billion, down from the prior $34 billion forecast.
