Strategy Builds $1.44B Cash Reserve, Revises Profit and Bitcoin Targets

Strategy (MSTR), led by Executive Chairman Michael Saylor, increased its bitcoin holdings last week to 650,000 BTC.

To ensure dividend funding for preferred stock, the company announced a $1.44 billion U.S. dollar reserve on Monday. Primarily funded through recent common stock sales, the reserve is designed to cover at least twelve months of dividends, with plans to expand coverage to 24 months or more.

Amid a 5% drop in bitcoin to $86,000—well below the prior year-end target of $150,000—Strategy revised its guidance. Full-year net income is now expected between a $5.5 billion loss and a $6.3 billion gain. Bitcoin yield targets were reduced to 22%-26% from 30%, and full-year bitcoin dollar gains are now projected at $8.4 billion–$12.8 billion, down from a previous $20 billion target.

The company also made a modest bitcoin purchase of 130 coins for $11.7 million, at an average of $89,860 per coin. Total bitcoin holdings now stand at 650,000 BTC, acquired for $48.38 billion, or $74,436 per coin. The purchase was largely funded by last week’s sale of 8.214 million common shares, which raised $1.478 billion, most of which went into the new reserve.

MSTR shares were down 4.4% in premarket trading, following bitcoin’s overnight decline.