Strategy announced the establishment of a $1.44 billion USD cash reserve, and revised its FY2025 Bitcoin-linked financial guidance. The move, led by Executive Chairman Michael Saylor, is intended to secure dividend payments and interest obligations while preserving the company’s core Bitcoin accumulation strategy.
Strategy funded the reserve primarily through the sale of roughly 8.2 million Class A common shares via an at-the-market program, raising nearly $1.5 billion. An at-the-market program is a share offering method that allows a company to sell stock into the open market at prevailing prices. The company says the cash buffer covers about 21 months of dividend obligations today, with a target to extend coverage to 24 months or more.
Michael Saylor described the reserve as “the next step in our evolution,” framing it as a pragmatic liquidity measure to navigate short-term market volatility while pursuing the firm’s longer-term plan to issue “Digital Credit.” Strategy characterized the reserve as complementary to its existing Bitcoin treasury rather than a departure from its asset strategy. Critics reacted sharply: investor and commentator Peter Schiff called the action “the beginning of the end,” arguing the company sold equity to buy U.S. dollars rather than Bitcoin.
The firm positioned the reserve as a defensive financial engineering step to ensure payment obligations are met without forcing asset sales. Phong Le, the company’s CEO, emphasized that selling Bitcoin would be a “last resort” to fund dividends, underscoring the stated priority to avoid liquidating digital-asset holdings for cash needs.
Revised FY2025 guidance and accounting impact
Strategy updated its FY2025 Bitcoin price assumption to a year-end range of $85,000–$110,000, down from a prior internal assumption of $150,000. Based on that outlook, the company projects FY2025 operating income between a loss of $7.0 billion and a profit of $9.5 billion, net income between a loss of $5.5 billion and a gain of $6.3 billion, and diluted earnings per share ranging from a loss of $17.0 to a gain of $19.0.
The company expects Bitcoin-related KPI outcomes to include a Bitcoin yield of 22.0%–26.0% and total Bitcoin dollar gains of approximately $8.4 billion–$12.8 billion for FY2025. Strategy reported holding about 650,000 BTC acquired at an average price of $74,436, representing roughly 3.1% of Bitcoin’s eventual supply.
ASU 2023-08 is now a material factor in the company’s reporting; it requires fair-value measurement of Bitcoin holdings and therefore directly ties reported earnings to market price movements. In one sentence: ASU 2023-08 mandates that companies measure digital-asset holdings at fair value, causing earnings to fluctuate with the market price of those assets.
Strategy’s establishment of a $1.44 billion reserve and its downward revision of FY2025 Bitcoin assumptions reflect a dual objective: manage near-term fiat obligations while maintaining an aggressive Bitcoin treasury posture.
