Strategy Inc. has established a $1.44 billion U.S. dollar reserve and disclosed additional Bitcoin purchases, stating the reserve is designed to support upcoming dividend and interest obligations.

The company said the reserve was funded through sales of Class A common stock under its at-the-market program. 

The reserve is expected to cover around 12 months of dividend and interest payments and may be expanded depending on market and liquidity conditions. 

Founder and Executive Chairman Michael Saylor commented that “establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution.”

President and CEO Phong Le added, “Strategy now holds 650,000 Bitcoin… we have established a USD Reserve that currently covers 21 months of Dividends.”

Strategy also updated its fiscal year 2025 outlook, revising assumptions after Bitcoin’s price decline since late October. 

The company now models a year-end Bitcoin price range of $85,000 to $110,000, down from the previous $150,000 assumption. 

Based on that range, projected results include operating income (loss) of $(7.0) billion to $9.5 billion, net income (loss) of $(5.5) billion to $6.3 billion, and diluted EPS of $(17.0) to $19.0. 

The company said its fair-value Bitcoin accounting standard makes earnings sensitive to price volatility and that actual results may differ if Bitcoin ends the year outside the assumed range.

Strategy also revised its Bitcoin-related KPIs within the same price assumptions, targeting a BTC yield of 22.0% to 26.0% and Bitcoin dollar gains of $8.4 billion to $12.8 billion. 

These expectations incorporate planned equity and preferred issuances used to purchase additional Bitcoin.

Strategy describes itself as a Bitcoin-focused treasury company that accumulates Bitcoin through equity and debt financing and operational cash flows. 

The firm also operates an enterprise analytics software division that incorporates AI systems.

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