Bitcoin News Today: Strategy's $1.44B Reserve Aims to Avoid Bitcoin Sales Amid Volatility

Strategy, the world's largest corporate holder of Bitcoin, has established a $1.44 billion U.S. dollar reserve to support dividend payments and interest obligations, a move aimed at addressing investor concerns over potential Bitcoin sales amid a recent market downturn. The reserve, funded through proceeds from an at-the-market stock offering, is designed to cover at least 12 months of dividend payments, with plans to expand it to 24 months in the future. This follows the company's announcement of an additional Bitcoin purchase of 130 BTC for $11.7 million, bringing its total holdings to 650,000 BTC, or 3.1% of the total supply.

The decision reflects Strategy's broader strategy to balance its Bitcoin-centric business model with financial stability. CEO Phong Le emphasized that the reserve reduces the likelihood of selling Bitcoin, even as the firm maintains flexibility to do so if its market-adjusted net asset value (mNAV) dips below 1.0. "We want to assure investors that Bitcoin's volatility will never impact their dividends," said co-founder Michael Saylor, who reiterated that the company can sell highly appreciated Bitcoin to fund dividends while continuing to grow its holdings. The reserve announcement comes as Bitcoin has fallen nearly 32% from its October peak, trading around $85,500 as of December 1.

Strategy's approach has drawn both support and scrutiny. While the firm's equity and debt financing model has allowed it to accumulate Bitcoin without near-term refinancing risks, critics highlight the challenges of maintaining value in a volatile market. Shane Molidor, a crypto analyst, noted that corporate Bitcoin purchases can trigger sharp price swings, particularly in less liquid assets. He cited past examples like Tesla and MicroStrategy, where even modest announcements influenced Bitcoin's price during thinner market conditions. Today, deeper liquidity has muted such impacts, but smaller tokens remain vulnerable to speculative buying and selling cycles.

The move also underscores a broader debate about Bitcoin's role as a reserve asset. Despite Strategy's aggressive accumulation, gold has outperformed Bitcoin in 2025, rising 58% compared to Bitcoin's 12% decline. Mark Connors of Risk Dimensions attributed this to gold's established infrastructure and institutional trust, noting that central banks and large allocators still prefer gold for its trade utility and historical precedent. "Bitcoin is still too young for institutions to fully embrace it," he said, emphasizing that gold's role in international settlements and trade remains unmatched.

Market reactions to Strategy's reserve have been mixed. Shares of MSTR fell over 6% following the announcement, reflecting broader crypto market jitters. The firm updated its 2025 guidance, projecting a range of outcomes from a $7 billion loss to a $9.5 billion profit, depending on Bitcoin's year-end price. Analysts, however, remain cautious about a Bitcoin sell-off. Prediction markets suggest only a 6% chance Strategy will liquidate its holdings before year-end.

As the company navigates a volatile macro environment, its dual strategy of maintaining Bitcoin reserves and bolstering liquidity positions it to weather short-term fluctuations. With Bitcoin's price stabilization still uncertain, Strategy's approach highlights the evolving dynamics of corporate treasury management in the crypto space.