Key highlights:
- A massive new reserve signals an unexpected shift in Strategy’s tactics.
- MSTR Bitcoin holdings surge again as the company edges past 650,000 BTC.
- Updated targets reveal how the company sees Bitcoin’s next move.
Strategy (MSTR), the world’s largest institutional Bitcoin holder, has created a $1.44 billion reserve to support dividend payments and debt obligations while simultaneously expanding its Bitcoin position to 650,000 BTC.
Strategy announces $1.44B USD Reserve and now hodls 650,000 $BTC. pic.twitter.com/FNFivMNQgh
— Strategy (@Strategy) December 1, 2025
The move comes as the company adjusts to market volatility and prepares for a more conservative earnings outlook for 2025.
The new reserve was funded through the sale of Class A common stock as part of the company’s ongoing public offering program. MicroStrategy stated that the reserve will play a central role in ensuring consistent dividend payments on preferred shares and interest on outstanding debt.
Growing reserves and growing Bitcoin holdings
MicroStrategy plans to maintain enough liquidity to cover at least 12 months of dividend payments, with a long-term goal of expanding the reserve to 24 months or more.
Alongside this initiative, the company purchased 130 additional bitcoins for $11.7 million, increasing total holdings to 650,000 BTC (roughly 3.1% of Bitcoin’s total supply).
The new $1.44B reserve accounts for:
- 2.2% of the company’s total corporate value
- 2.8% of its share price
- 2.4% of its Bitcoin asset value
Strategy executive chairman Michael Saylor described the cash reserve as “the next step in our evolution,” noting that the combination of Bitcoin and dollar reserves will help the company better navigate short-term market swings.
MicroStrategy CEO and President Phong Le added that the reserve currently covers 21 months of dividend obligations, positioning the company more favorably for both shareholders and credit investors.
The company said that its updated approach strengthens the appeal of its preferred shares, debt instruments, and common stock. MicroStrategy raised the entire $1.44 billion in under nine trading days, highlighting investor demand as Strategy continues to execute on its Bitcoin accumulation plan.
MicroStrategy adjusts 2025 expectations
Along with its reserve strategy and expanded Bitcoin holdings, MicroStrategy significantly revised its 2025 performance outlook.
- Bitcoin return expectations have been lowered to 22–26% for the year.
- Year-end Bitcoin price projection now stands between $85,000 and $110,000.
- The company reduced its Bitcoin profit target from $20B to a range of $8.4B-$12.8B.
- Operating profit is now forecast between $7B and $9.5B, down from the original $34B estimate.
Source:: MicroStrategy Creates a $1.44B Buffer to Protect Its 650,000 BTC From Dividend Costs