Strategy $MSTR ( ▲ 3.83% ) exists for one purpose: buy bitcoin $BTC ( ▲ 4.06% ) and never let go. Selling bitcoin is the opposite of the company’s identity, but its debt-funded balance sheet means it has interest and dividend payments that still need to be made. That raised concerns the firm might eventually be forced to unload part of its massive crypto stash. CEO Phong Le even acknowledged last week that the company would sell bitcoin if needed to support its dividend at low mNAV levels.
To avoid that scenario, Strategy announced a new US dollar reserve of $1.44 billion. The stash covers roughly 21 months of required payments, with plans to eventually build up two years or more of cushion. The cash came from proceeds raised through the company’s at-the-market share sale program.
Shares dropped Monday as the stock hit its lowest levels since last October. But the cash reserve removes one of the biggest overhangs for investors: fears that Strategy could be forced into selling bitcoin into a falling market. Michael Saylor said the reserve gives the company more stability to weather short-term volatility.
The company also reset expectations for next year. Strategy cut its projected year-end 2025 bitcoin price range to between 85,000 and 100,000, down from its earlier target of 150,000. With that shift, the firm slashed its guidance for full-year operating income, net income, and earnings per share by more than 90 percent from its October 30 outlook.