Strategy’s new USD Reserve announcement comes at a moment when the company is reshaping how it manages liquidity and prepares for changing market conditions. The firm has formally created a 1.44 billion dollar reserve to support dividend payments across its preferred stock and interest obligations. Strategy states that the reserve is intended to secure at least twelve months of dividend coverage, with an internal goal of eventually extending that window to twenty four months or more. The approach signals a shift toward balancing its long standing Bitcoin accumulation strategy with a more predictable cash buffer to navigate short term volatility.

Why Strategy Established a 1.44 Billion Dollar Reserve

Strategy funded the USD Reserve using proceeds from its at the market offering of class A common stock. The company emphasized that the primary purpose of the reserve is to support dividend payments and maintain stability for its preferred shareholders and credit investors. Leadership described the reserve as an important complement to its Bitcoin holdings, which now total 650,000 BTC. The firm added 130 BTC in late November for roughly 11.7 million dollars, bringing its long term cost basis to just over 74,436 dollars per coin.

Michael Saylor, Founder and Executive Chairman, explained that this dual reserve model strengthens Strategy’s ability to manage short term fluctuations in the Bitcoin market. CEO Phong Le noted that the current 1.44 billion dollar cash reserve represents about twenty one months of dividend coverage, though Strategy retains full discretion to modify the reserve based on liquidity needs, market conditions, or other factors.

The announcement positions Strategy as one of the largest combined holders of cash and crypto among public companies. It also places the firm’s approach in the broader landscape of institutional crypto treasuries, which continues to evolve rapidly.

Also read: Michael Saylor Bitcoin Sale Rumors Addressed

How the Reserve Fits Into Strategy’s Updated FY2025 Outlook

Alongside the USD Reserve announcement, Strategy updated the assumptions used in its FY2025 guidance published in October. The prior model assumed a year end Bitcoin price of 150,000 dollars, but the recent decline to lows near 80,660 dollars led the company to revise its expectations. Strategy now bases its FY2025 outlook on a Bitcoin price range between 85,000 and 110,000 dollars at year end.

Within that range, Strategy projects FY2025 operating income between negative 7.0 billion and positive 9.5 billion dollars. Net income is estimated between negative 5.5 billion and positive 6.3 billion dollars. Diluted earnings per share may fall between negative 17.0 dollars and positive 19.0 dollars, depending on market performance and additional capital raises required to meet its Bitcoin yield goals.

BTC KPI targets have also been updated. Strategy now expects a BTC yield of 22.0 to 26.0 percent for FY2025 and a BTC dollar gain of 8.4 to 12.8 billion dollars. These targets assume continued equity issuance, maintenance of the newly created USD Reserve, and incremental Bitcoin purchases.

The company continues to caution that actual results could vary materially if Bitcoin’s market price diverges from the assumed range. Its earnings remain highly sensitive to BTC price movements due to fair value accounting standards adopted in 2023.

Also read: Sony Bank to Launch USD-Pegged Stablecoin for Ecosystem Payments

How Strategy’s USD Reserve Fits Into the MSCI Treasury Debate

Strategy’s updated reserve strategy also lands in the middle of the ongoing MSCI Digital Asset Treasury Review. MSCI is considering a rule that could exclude companies from equity indexes if half or more of their assets are crypto, and the final decision is expected in January 2026. That review has already sparked market debate after some observers linked the October 10 selloff to MSCI’s consultation letter, though others pointed instead to liquidity stress and a temporary pricing glitch. Against that uncertain backdrop, Strategy’s decision to strengthen its USD Reserve signals an effort to present clearer operating discipline while continuing to pursue its long term Bitcoin accumulation plan.

Strategy’s move arrives as other major institutions increase their own digital asset positions. BitMine Immersion Technologies recently announced that its Ethereum holdings reached 3.73 million tokens, representing more than 3 percent of the total ETH supply. Its combined crypto and cash holdings now total 12.1 billion dollars, placing it among the largest crypto treasuries globally. BitMine continues accelerating ETH accumulation ahead of the upcoming Fusaka network upgrade and remains supported by several prominent institutional investors.

With Strategy leading in Bitcoin reserves and BitMine emerging as the largest Ethereum treasury, the sector is seeing a clear rise in large scale corporate accumulation strategies. These developments indicate growing adoption of crypto as a treasury component among publicly listed firms.

What This Strategy USD Reserve Announcement Signals for 2025

The Strategy USD Reserve announcement reflects a more structured balance between Bitcoin accumulation and stable liquidity planning. The company is preparing for a wide range of potential market conditions in 2025 while still positioning itself around its long term Bitcoin thesis. A 1.44 billion dollar reserve gives Strategy a defined buffer for dividend obligations, and ongoing updates to guidance show how closely its earnings depend on Bitcoin’s price performance. As more firms expand their holdings in BTC and ETH, Strategy’s updated approach offers a clearer view of how major institutions may structure their balance sheets in the coming year.