- A $1.44 billion reserve aims to stabilize dividends for 21 months.
- The new USD reserve shields investors from Bitcoin volatility while supporting ongoing returns.
Strategy Inc. has unveiled a new $1.44 billion reserve designed to stabilize dividends as the company continues to expand to a large-scale Bitcoin strategy. This reserve is funded through recent sales of Class A common stocks. It’s expected to cover 21 months of dividends with plans to extend to 24 months or more.
Michael Saylor, Strategy’s Executive Chairman, stated in a statement.
“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution, and we believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of Digital Credit.”
He held that this move is expected to strengthen Strategy Inc.’s ability to cope with market changes.
Phong Le, the Chief Executive Officer, also noted that Strategy Inc. is currently holding 650,000 BTC, an equivalent of about 3.1% of all bitcoin. He added that despite the recent price drop of Bitcoin, Strategy Inc. has updated its 2025 earnings guidance, assuming an end-of-the-year BTC price of $85,000 – $110,000.
The expected results now range between $7.0B to $9.5B in operating income and $17 to $19 per share of common stock. Updated KPI targets project a 22-26% BTC yield and $8.4 Billion – $12.8Billion BTC gains.
See Related: Serenity Shield and Digital Insights Announce Strategic Partnership
What The New USD Reserve Means For Investors
According to Michael, Strategy Inc’s new reserve will offer a financial buffer and provide interest payments amid Bitcoin volatility. This initiative signals a stronger short-term stability while maintaining exposure to Bitcoin’s long-term upside.
However, industry critics say that raising cash to service obligations instead of buying more Bitcoin signals a flawed business model.
