Michael Saylor's Strategy announces $1.44B dollar reserve as stock slumps

MSTR -11.35% BTC-USD -7.94%

Michael Saylor's Strategy (NASDAQ: MSTR) announced on Dec. 1 that it has created a $1.44 billion United States dollar (USD) reserve to support dividend payments on preferred stock and service its debt obligations, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).

The company said the fund, dubbed the “USD Reserve,” was financed through proceeds from its at-the-market stock offering.

Strategy aims to maintain a balance sufficient to cover at least 12 months of dividends, with long-term plans to extend that coverage to 24 months or more.

“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution,” Saylor said. 

“We believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of Digital Credit.”

The company also confirmed it now holds 650,000 Bitcoin (BTC), representing roughly 3.1% of the total supply that will ever exist.

MicroStrategy stock has plunged more than 60% from its peak as MSTR trades near $177, extending a month-long decline driven by weaker Bitcoin prices and shifting market sentiment.

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Why is it a big deal?

For over four years, Strategy operated on a simple playbook, which is to convert every available dollar into Bitcoin. The new “USD Reserve,” funded through its at-the-market stock program, marks a structural change in how the company manages risk.

But with the company’s modified NAV (mNAV) falling to 1, meaning Strategy’s equity value is now trading roughly at the value of its underlying Bitcoin holdings with no premium from the market, Saylor is moving to stabilize the balance sheet

By holding enough cash to cover 12–24 months of payouts, Strategy is effectively insulating itself from short-term Bitcoin volatility while continuing to accumulate BTC, which now totals 650,000 coins, or roughly 3.1% of all Bitcoin that will ever exist.

The move also positions Strategy to expand Saylor’s long-term vision of becoming the world’s leading issuer of “Digital Credit,” a strategy that relies on stable cash flows rather than pure BTC appreciation.

Updated Bitcoin assumptions and earnings outlook

In the same filing, Strategy revised its fiscal year 2025 (FY2025) guidance, adjusting its assumptions for Bitcoin’s year-end price due to recent market declines.

The company now expects BTC to trade between $85,000 and $110,000 on Dec. 31, 2025, down from its previous projection of $150,000.

Based on this range, Strategy forecasts FY2025 operating income between a loss of $7 billion and a profit of $9.5 billion, and net income between a loss of $5.5 billion and a gain of $6.3 billion. Diluted earnings per share are projected to range from a $17 loss to a $19 gain.

Strategy also updated its Bitcoin key performance indicator (KPI) targets. It now expects a BTC yield of 22%–26% and a BTC dollar gain between $8.4 billion and $12.8 billion, assuming successful capital raises to fund further Bitcoin acquisitions.

The company adopted the latest U.S. accounting standard requiring fair-value measurement of crypto assets, noting that its earnings remain “extremely sensitive” to Bitcoin’s market price. Strategy noted that results could vary materially if BTC prices deviate from current assumptions.

Related: MicroStrategy director dumps all his MSTR shares

This story was originally published by TheStreet on Dec 1, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.