Strategy Forms $1.44B Cash Reserve, Lowers 2025 Profit and Bitcoin Yield Targets

Led by Executive Chairman Michael Saylor, Strategy (MSTR) last week added to its bitcoin holdings, bringing its total to 650,000 BTC.

Facing questions about its ability to fund dividends on various classes of preferred stock, Strategy and Saylor announced on Monday the creation of a $1.44 billion U.S. dollar reserve. The reserve, funded through last week’s sale of common stock, is initially intended to cover at least twelve months of dividends, with the company aiming to expand it to cover 24 months or more over time.

Amid a continued decline in bitcoin prices—down another 5% to $86,000 on Monday morning, well below the company’s prior year-end expectation of $150,000—Strategy revised its full-year profit and bitcoin yield targets.

The company now assumes a year-end bitcoin price range of $85,000–$110,000, guiding full-year net income between a $5.5 billion loss and a $6.3 billion gain. Its bitcoin yield target has been reduced to 22%-26%, down from 30%, while the full-year bitcoin dollar gain target is now $8.4 billion–$12.8 billion, compared with a prior target of $20 billion.

Strategy also made a modest bitcoin purchase of 130 coins for $11.7 million, at an average price of $89,860 per coin. This brings the company’s total bitcoin holdings to 650,000 BTC, acquired for $48.38 billion, or an average of $74,436 per coin. The purchase was funded largely through the sale of 8.214 million common shares last week, which raised $1.478 billion, most of which was allocated to the new dollar reserve.

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