Michael Saylor’s Strategy Forms $1.44B USD Reserve and Updates FY2025 Bitcoin-Linked Guidance

Strategy has created a U.S. dollar reserve totaling $1.44 billion, marking an expansion of its balance sheet strategy as it positions itself as the world’s largest “Bitcoin Treasury Company.”

The reserve will be used to support dividend payments on preferred stock and meet interest obligations, providing enhanced liquidity cushions amid volatile digital-asset markets.

The fund was financed through proceeds from ongoing at-the-market stock sales. Strategy said its goal is to maintain coverage for at least 12 months of dividend obligations, ultimately extending that to 24 months or more. The reserve will remain at the company’s discretion and may be adjusted based on market conditions and capital requirements.

Founder and Executive Chairman Michael Saylor described the USD Reserve as the next step in the company’s evolution, complementing its Bitcoin reserve.

“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 said.

CEO Phong Le added that Strategy now holds 650,000 Bitcoin, representing roughly 3.1% of total eventual supply. The firm’s USD Reserve currently covers 21 months of dividends, he noted.

Revised 2025 Outlook Reflects Bitcoin Price Volatility

Strategy has also updated the assumptions behind its FY2025 earnings guidance following recent declines in Bitcoin’s trading price.

If Bitcoin ends 2025 within the range of $85,000 to $110,000, Strategy said it expects operating income to fall anywhere between a loss of $7.0 billion and a profit of $9.5 billion, while net income could range from a loss of $5.5 billion to a gain of $6.3 billion.

Diluted earnings per share are projected to come in between a loss of $17.0 per share and earnings of $19.0 per share. These projections rely on the successful completion of planned capital raises that would allow Strategy to achieve its 2025 Bitcoin Yield Target and deploy the resulting proceeds into additional Bitcoin purchases.

Updated Bitcoin KPI Targets for 2025

Under the same Bitcoin price assumptions and incorporating anticipated common stock issuance to maintain the USD Reserve, Strategy said it now expects its Bitcoin yield for the year to fall between 22.0% and 26.0%. The company also forecasts Bitcoin dollar gains of between $8.4 billion and $12.8 billion.

Strategy said it expects to reach these targets through a combination of preferred stock offerings, disciplined equity issuance, and continued accumulation of bitcoin.

Market Reaction and Peter Schiff’s Criticism

The announcement drew swift and vocal commentary from market observers, including well-known Bitcoin critic Peter Schiff, who posted on X that Strategy’s establishment of a USD Reserve indicates “the beginning of the end of $MSTR.”

Schiff argued that Strategy was “forced to sell stock not to buy Bitcoin, but to buy U.S. dollars” in order to cover interest and dividend obligations, calling the business model “broken” and alleging that the company was relying on equity sales to sustain its financial commitments.