$1.44B Cash Reserve Set as Strategy Lowers 2025 Profit and Bitcoin Yield Goals

Strategy Creates $1.44B Cash Reserve, Revises Profit and Bitcoin Yield Targets

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

In response to questions about its ability to fund dividends on various preferred stock classes, the company announced the establishment of a $1.44 billion U.S. dollar reserve on Monday. Funded primarily through the recent sale of common stock, the reserve is intended to cover at least twelve months of dividends, with plans to increase it to cover 24 months or more.

The move comes amid a continued pullback in bitcoin prices, down 5% to $86,000 on Monday morning, versus the company’s prior year-end target of $150,000. Strategy accordingly revised its full-year guidance: net income is now projected between a $5.5 billion loss and a $6.3 billion gain, while the bitcoin yield target was cut to 22%-26% from 30%. Full-year bitcoin dollar gains are now expected in the range of $8.4 billion to $12.8 billion, down from a previous $20 billion target.

Additionally, Strategy purchased 130 bitcoins for $11.7 million at an average price of $89,860 per coin, bringing its total holdings to 650,000 BTC acquired for $48.38 billion, or $74,436 per coin. The purchase was largely funded through the sale of 8.214 million common shares last week, raising $1.478 billion, most of which was allocated to the new cash reserve.

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