Bitcoin Drops 4.35% on Month as Strategy Announces $1.44B Reserve and 650,000 BTC Holdings

On DEC 1, 2025, Bitcoin (BTC) closed at $86,459.48, representing a 0.16% increase in the last 24 hours. However, the broader price trend remains bearish, with a 4.48% drop over the past seven days, a 4.35% decline within one month, and a 7.64% reduction over the past year. Amid this pullback, several major institutional developments have emerged in the Bitcoin market, most notably the actions of Strategy Inc., a major corporate holder of Bitcoin.

Strategy Announces $1.44 Billion USD Reserve and Expands BTC Holdings to 650,000 Coins

Michael Saylor, Executive Chairman of Strategy Inc., announced the creation of a $1.44 billion USD Reserve on DEC 1, 2025. This reserve is intended to provide financial flexibility by supporting dividend payments on its preferred stock and covering outstanding interest obligations. The initiative was funded through the sale of shares of class A common stock under the company’s at-the-market offering program.

In addition to securing the USD Reserve, Strategy announced that it has increased its Bitcoin holdings to 650,000 BTC. The company acquired an additional 130 BTC for $11.7 million, bringing its total Bitcoin stash to 3.1% of the maximum 21 million coins that will ever exist. The average acquisition price of Strategy’s Bitcoin portfolio remains at $74,436, with the total cost of the 650,000 BTC amounting to $48.38 billion.

The USD Reserve and BTC accumulation move are part of Strategy’s broader financial strategy to weather short-term volatility and maintain its position as a key Bitcoin issuer. Saylor emphasized that this step reflects the company's commitment to delivering long-term value, despite the ongoing price corrections in the crypto market.

Strategy Cuts 2025 Profit and BTC Yield Targets Amid Falling BTC Prices

Given the sharp decline in Bitcoin prices, Strategy Inc. significantly revised its 2025 financial projections. The company now anticipates a full-year net income range between a $5.5 billion loss and a $6.3 billion gain. This is a drastic reduction from its previous target of a $24 billion net profit, which assumed a Bitcoin price of $150,000 by year-end.

The Bitcoin yield target has also been cut from 30% to a range of 22% to 26%, while the Bitcoin dollar gain target has been reduced from $20 billion to $8.4 billion to $12.8 billion. The company’s updated outlook reflects the current market conditions and the uncertainty surrounding Bitcoin’s ability to rebound in the near term.

Institutional Moves Highlighted as Market Uncertainty Persists

In addition to Strategy’s developments, other institutional activity has drawn attention. BlackRock, a major financial institution, deposited 2,156 BTC valued at approximately $186 million into a Coinbase wallet. The transaction, which was flagged by on-chain analytics firms, underscores the continued institutional interest in Bitcoin despite the recent downturn.

The movement of such large volumes of Bitcoin to an institutional-grade exchange like Coinbase is typically associated with liquidity management or ETF-related activities. While no immediate sell pressure has been observed, analysts are closely monitoring the address activity to determine whether this move signals a larger strategic shift in BlackRock’s Bitcoin exposure.

Market Volatility and Liquidity Concerns

The ongoing sell-off has led to heightened volatility, particularly in altcoins. Ethereum (ETH), XRP, and Solana (SOL) have all experienced sharp declines, with liquidations exceeding $300 million across leveraged long positions in a single day. The broader market environment has been characterized by risk-off sentiment, with investors withdrawing from both equities and digital assets.

Amid the turbulence, several market participants have highlighted the importance of operational resilience within blockchain networks. Staking infrastructure providers, such as GeekStake, emphasize the role of stable validator systems and consistent transactional throughput in maintaining network reliability during periods of stress.

Conclusion

Despite the recent price decline, institutional activity remains robust, with major players like Strategy and BlackRock making strategic moves to bolster their Bitcoin positions and liquidity reserves. While the near-term outlook for Bitcoin is uncertain, these developments underscore the growing integration of cryptocurrencies into traditional financial frameworks.