- Strategy Inc built a sizable cash reserve to support dividends amid trimmed Bitcoin targets.
- The firm expanded its BTC stash while lowering 2025 expectations for price and income.
Strategy Inc. has built a $1.44 billion USD reserve to cover dividends on preferred stock and interest payments on its outstanding debt. The announcement came as the company made adjustments to its 2025 projections, including lower targets for Bitcoin yield and revenue. The funding for the reserve came from sales of Class A common stock under its at-the-market offering program.
This reserve amounts to 2.2% of the company’s total enterprise value, 2.8% of its equity, and 2.4% of its total Bitcoin holdings. Strategy Inc emphasized that the reserve would become the primary mechanism for dividend payments across its financial instruments.
“Our current intention is to maintain a USD Reserve in an amount sufficient to fund at least twelve months of its dividends,” the company said. Strategy aims to grow the reserve further to eventually cover 24 months or more of dividend commitments.
New USD Reserve Aims to Offset Volatility
As part of its ongoing strategy, the company recently bought an additional 130 Bitcoin, spending $11.7 million. This purchase brought its total holdings to 650,000 BTC, acquired at a cost of $48.38 billion. This accounts for about 3.1% of the total Bitcoin supply that will ever exist.
Company founder Michael Saylor described the reserve as a key development in managing market shifts. “Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution,” Saylor said, calling it a way to navigate near-term volatility while staying focused on digital credit expansion.
President and CEO Phong Le underlined that the USD reserve already provides coverage for 21 months of dividends. He tied this move to the company’s larger role in the Bitcoin space. Le said,
“In recognition of the important role we play in the broader Bitcoin ecosystem, and to further reinforce our commitment to our credit investors and shareholders, we have established a USD Reserve that currently covers 21 months of dividends.”
Bitcoin KPI Forecasts Adjusted with Reduced Revenue
Strategy Inc has revised its financial outlook for 2025, cutting key performance assumptions across the board. The estimated Bitcoin yield has been trimmed to fall between 22% and 26% by the end of next year. The projected BTC price range has also narrowed, now expected to reach between $85,000 and $110,000 by December 31.
The company also revised its Bitcoin gain targets downward. Previous goals pointed to $20 billion in expected gains, but that figure has now been lowered to a range between $8.4 billion and $12.8 billion. Likewise, the operating income forecast has been sharply reduced, now falling between $7 billion and $9.5 billion compared to the earlier $34 billion projection.
At the time of writing, Bitcoin was trading around $86,061, showing a 5.6% drop over the past day.
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