Strategy Inc., the company formerly known as MicroStrategy, announced major changes to its financial structure on December 1, 2025.
The Bitcoin treasury company established a $1.44 billion cash reserve while adding 130 more Bitcoin to reach a total of 650,000 BTC.
The announcement comes as Bitcoin’s price has dropped significantly from its October highs. Strategy also cut its financial targets for 2025, reflecting the challenging market conditions.
New Cash Reserve for Dividend Payments
Strategy created the USD reserve to pay dividends on its preferred stock and interest on its debt obligations. The company funded this reserve by selling shares of its common stock through its at-the-market offering program.
CEO Phong Le said the reserve currently covers 21 months of dividend payments. The company plans to grow this buffer to eventually cover 24 months or more of payments.
“In recognition of the important role we play in the broader Bitcoin ecosystem, and to further reinforce our commitment to our credit investors and shareholders, we have established a USD Reserve,” Le stated in the company’s press release.
Executive Chairman Michael Saylor called the cash reserve “the next step in our evolution.” He said it will help the company navigate short-term market volatility while pursuing its vision of becoming the world’s leading issuer of digital credit.
Bitcoin Holdings Reach New Milestone
Strategy purchased 130 Bitcoin between November 17 and November 30, 2025, spending $11.7 million at an average price of $89,960 per coin. This brought the company’s total Bitcoin holdings to exactly 650,000 BTC.
Source: @Strategy
The company has now acquired its entire Bitcoin stash for $48.38 billion, with an average purchase price of $74,436 per Bitcoin. Strategy’s 650,000 Bitcoin represents about 3.1% of the total 21 million Bitcoin that will ever exist.
This makes Strategy the largest corporate Bitcoin holder in the world. The company has been aggressively accumulating Bitcoin since August 2020 as part of its treasury strategy.
Lowered Financial Targets for 2025
Strategy significantly reduced its financial projections due to Bitcoin’s recent price decline. The company originally based its 2025 guidance on Bitcoin reaching $150,000 by year-end. However, Bitcoin has traded between $80,660 and $111,612 recently.
Strategy now assumes Bitcoin will end 2025 between $85,000 and $110,000. Based on this new price range, the company updated several key targets:
BTC Yield Target: 22% to 26% (down from 30%)
BTC Dollar Gain Target: $8.4 billion to $12.8 billion (down from $20 billion)
Operating Income: Between approximately a $7.0 billion loss and $9.5 billion profit
The wide range in operating income reflects the new accounting standards that require Strategy to mark its Bitcoin holdings to market value each quarter. This makes the company’s earnings extremely sensitive to Bitcoin price movements.
Stock Performance and Market Concerns
Strategy’s stock price has struggled alongside Bitcoin’s recent decline. MSTR shares fell more than 4% in pre-market trading following the announcement. The stock has declined significantly from its recent highs.
Some analysts worry about Strategy’s business model during extended periods of Bitcoin weakness. The company relies on issuing stock and convertible bonds to fund Bitcoin purchases. If Bitcoin’s price stagnates and Strategy’s stock premium disappears, the company could face difficult decisions.
CEO Le recently acknowledged that Strategy would only sell Bitcoin as a “last resort.” This would happen if the company’s stock trades below its net asset value and Strategy loses access to new capital markets. Le called this a purely “mathematical” decision to protect shareholders.
The company’s market-to-net-asset-value (mNAV) ratio is a critical metric that investors watch closely. When this ratio falls below 1.0, it means Strategy’s stock is trading for less than the value of its Bitcoin holdings, which could trigger difficult decisions about selling Bitcoin.
Market Challenges and Future Outlook
Strategy faces several potential challenges ahead. The company’s aggressive Bitcoin strategy has attracted scrutiny from some market observers who question its long-term sustainability. Critics argue the model depends entirely on Bitcoin’s price continuing to rise.
Additionally, there are concerns about Strategy’s inclusion in major stock indices. Some analysts worry the company could face removal from indices like the NASDAQ-100 if its stock continues to underperform.
The Federal Reserve’s monetary policy decisions could also impact both Bitcoin’s price and Strategy’s ability to access cheap capital for future Bitcoin purchases.
Despite these challenges, Strategy maintains its long-term commitment to Bitcoin accumulation. The company continues to operate under its ambitious “21/21 Plan” to raise $42 billion over three years for additional Bitcoin purchases.
A Balancing Act Between Growth and Stability
Strategy’s establishment of a $1.44 billion cash reserve represents a significant shift toward financial prudence without abandoning its core Bitcoin strategy. The company is adapting to market realities while maintaining its position as the world’s largest corporate Bitcoin holder.
The success of this approach will largely depend on Bitcoin’s price performance and Strategy’s ability to continue accessing capital markets on favorable terms. With 650,000 Bitcoin, Strategy’s fortunes remain closely tied to the cryptocurrency’s volatile price movements.