Key Highlights
- Strategy created a $1.44 billion reserve to cover dividends and debt interest.
- The company updated its 2025 profit guidance due to Bitcoin price drops, with net income now expected between $(5.5)B and $(6.3)B.
- BTC yield is now estimated at 22%-26%, with total BTC gain expected at $8.4B-$12.8
Strategy, the Bitcoin treasury firm, announced on Monday that it has set up a $1.44 billion U.S. dollar reserve to help pay dividends on its preferred stock and interest on its debts. The move follows questions about the firm’s ability to fund dividends on different classes of preferred stock.
The firm said the reserve was funded by selling 8.2 million shares of its Class A common stock under an at-the-market program, which brought in almost $1.5 billion. The company also revised its Bitcoin (BTC) expectations and now forecasts the token to end somewhere between $85,000 and $110,000 in 2025.
A 21-month dividends plan
In the press release, CEO and President Phong Le said the reserve currently covers 21 months of dividends, and the company aims to expand it to cover 24 months or more.
Executive Chairman Michael Saylor described the reserve as a step in Strategy’s evolution, stating, “Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution, and 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.”
Updated 2025 profit and Bitcoin plans
Strategy updated its 2025 profit guidance and Bitcoin targets. Previously, the company assumed Bitcoin would reach $150,000 by the end of 2025. However, the prices fell from $111,612 on October 30 to $80,660 on November 21. As of today, Bitcoin is trading for $86,212, according to data from CoinMarketCap.

Now, the company expects a year-end Bitcoin price between $85,000 and $110,000. Based on this, it projects FY2025 operating income between $7.0 billion and $9.5 billion, net income between $5.5 billion and $6.3 billion, and diluted earnings per share from $17.0 to $19.0.
The firm also updated its Bitcoin performance expectations. The BTC yield is now expected to be 22% to 26%, and the total Bitcoin gains could reach $8.4 billion to $12.8 billion. Strategy said it expects to reach these targets by selling preferred stock, carefully issuing common stock, and buying more Bitcoin.
Recently, the company acquired 130 BTC for $11.7 million, increasing its total holdings to 650,000 BTC, purchased for $48.38 billion at an average of $74,436 per coin.
Strategy now follows new accounting rules (ASU 2023-08), which means it must measure Bitcoin at its fair market value. This means earnings will change with Bitcoin prices, and the company warns that results may vary if the market price differs from the assumed range. Phong Le also noted that selling Bitcoin would be a last resort to fund dividends.
Also Read: Strategy Shows Strong BTC Debt Coverage Down to $25K Price Level
