Strategy Inc. (NASDAQ:MSTR) has purchased 130 Bitcoin (CRYPTO: BTC) and launched a $1.44 billion reserve U.S. dollar reserve, the company announced on Monday.
Strategy Updates BTC Holdings And Earnings Assumptions
President and CEO Fong Lee said the firm now holds 650,000 Bitcoin, valued at about $59 billion, according to the company's Dec. 1 update.
He noted that updated guidance assumes a year-end Bitcoin price between $85,000 and $110,000, down from the earlier $150,000 assumption.
Under the revised range, Strategy expects year-end BTC dollar gains of $8.4 billion to $12.8 billion.
Through the first three quarters of 2025, it reported $12 billion in operating income and $8.6 billion in net income.
Lee said earnings will shift meaningfully based on whether Bitcoin finishes the year above or below $94,000, the level that produced full-year profitability in 2024.
BTC Yield Target Revised As Digital Credit Issuance Slows
The company's BTC yield percentage stands at 24.6% as of Nov. 30, slightly below the full-year target of 30%.
Lee expects the year to end between 22% and 26%, depending on issuance of digital credit and equity.
He added that the company's earlier goal of $20 billion in BTC dollar gain is now tracking closer to $10 billion because Bitcoin's price has pulled back from prior highs.
USD Reserve Introduced To Weather Market Stress
Strategy's most significant announcement was the creation of a new $1.44 billion U.S. dollar reserve, raised in less than nine days by selling equity at an average of 1.17x mNAV.
Lee said the reserve will fund dividends and interest without relying on Bitcoin sales during downturns.
The company now has 21 months of dividend coverage in cash and aims to reach 24 months.
Strategy views the reserve as a buffer that protects its digital credit products from Bitcoin volatility.
Lee said the reserve represents just 2.2% of enterprise value and 2.4% of its Bitcoin holdings.
Saylor Describes ‘Bitcoin Reactor' Backed By USD Battery
Executive Chairman Michael Saylor said Strategy has built the world's first full digital credit vehicle, supported by three capital-market "drives": equity, Bitcoin, and derivatives.
He described the Bitcoin reserve as a "reactor" and the USD reserve as a "battery" designed to smooth volatility.
Saylor said the company can raise cash for dividends by selling a small portion of its Bitcoin or using derivatives.
He said the firm can also expand its Bitcoin holdings at the same time through digital credit issuance.
The Strategy founder outlined metrics which show the firm could withstand Bitcoin falling 19% per year for a decade before reaching one-to-one collateralization.
He also highlighted that Bitcoin only needs to appreciate 1.4% annually for the company to create shareholder value.
Liquidity Pools And ‘Escape Velocity' For Outperformance
Strategy's equity trades around $3.6 billion in daily liquidity, while Bitcoin markets see about $50 billion in daily volume and derivative markets around $100 billion.
Saylor said these deep markets give the company multiple ways to support dividends while continuing to accumulate Bitcoin.
He added that if Bitcoin appreciates faster than 10.3% per year, the company's digital credit instruments outperform simply holding Bitcoin.
Strategy believes Bitcoin will continue appreciating above that rate.
Strategy Stock Extends Steep Decline As Downtrend Strengthens
MSTR Price Prediction as of December 1st (Source: TradingView)
Strategy Inc. dropped more than 6% on Monday, hitting new lows near $166 and staying locked inside the descending channel that has guided price since August.
Sellers rejected the stock again at the upper boundary, keeping momentum firmly bearish.
MSTR trades well below all major EMAs, with the 20-day at $205 and the 50-day near $253.
Every rebound has failed at the 20-day level, confirming sustained downside pressure.
MACD remains deep below zero with no sign of base formation.
Support sits at the channel base near $160, with a breakdown exposing the $135 zone.
Bulls need a close above the 20-day EMA to slow the trend and challenge the mid-channel area around $253.
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