Bitcoin News Today: Strategy Inc's Dual Reserve Strategy Navigates Bitcoin Volatility and Dividend Demands

Strategy Inc (MSTR) has established a $1.44 billion U.S. dollar reserve to bolster its financial resilience amid Bitcoin's recent volatility and to support dividend payments on preferred stock and interest obligations. The reserve, funded through proceeds from an at-the-market stock offering program, [aims to cover at least 12 months of dividend and interest payments](https://seekingalpha.com/news/4526900-strategy-establishes-144b-usd-reserve-to-navigate-market-volatility-updates-guidance), with a long-term goal of expanding coverage to 24 months. This move comes as [Bitcoin prices plummeted from $111,612 on October 30, 2025](https://yellow.com/news/strategy-establishes-dollar144-billion-usd-reserve-slashes-2025-bitcoin-targets-amid-market-downturn), to lows near $80,660 by November 21, 2025, forcing the company to revise its 2025 guidance.

The reserve complements Strategy's existing Bitcoin holdings, which now total 650,000 BTC—approximately 3.1% of the total supply—acquired for $48.38 billion at an average price of $74,436 per bitcoin [according to reports](https://seekingalpha.com/news/4526900-strategy-establishes-144b-usd-reserve-to-navigate-market-volatility-updates-guidance). Executive Chairman Michael Saylor described the USD reserve as a strategic evolution, [stating it would "better position us to navigate short-term market volatility while delivering on our vision of being the world's leading issuer of digital credit"](https://cryptonews.com/news/michael-saylors-strategy-forms-1-44b-usd-reserve-and-updates-fy2025-bitcoin-linked-guidance/). CEO Phong Le added that the reserve currently covers 21 months of dividend obligations and [emphasized the company's intent to expand it further](https://cryptonews.com/news/michael-saylors-strategy-forms-1-44b-usd-reserve-and-updates-fy2025-bitcoin-linked-guidance/).

The announcement coincided with a sharp revision of Strategy's fiscal year 2025 financial targets.

Previously, the company assumed a year-end Bitcoin price of $150,000. However, with the cryptocurrency trading in a revised range of $85,000 to $110,000, Strategy [now projects operating income between a $7 billion loss and $9.5 billion profit](https://seekingalpha.com/news/4526900-strategy-establishes-144b-usd-reserve-to-navigate-market-volatility-updates-guidance), net income ranging from a $5.5 billion loss to $6.3 billion gain, and diluted earnings per share between -$17 and $19. [The updated guidance reflects the company's accounting model](https://yellow.com/news/strategy-establishes-dollar144-billion-usd-reserve-slashes-2025-bitcoin-targets-amid-market-downturn), which ties earnings directly to Bitcoin's market price.

Despite the reserve, Strategy's stock has faced pressure. Shares [fell 11% on December 1, 2025](https://somoshermanos.mx/strategy-mstr-plunges-11-after-bitcoin-volatility-and-market-sell-off/), closing at $157.81, extending a year-to-date decline of 41%. [Analysts attribute the sell-off to broader market jitters](https://yellow.com/news/strategy-establishes-dollar144-billion-usd-reserve-slashes-2025-bitcoin-targets-amid-market-downturn) and concerns over the company's reliance on Bitcoin. JPMorgan analysts warned that potential removal from major indices like the Nasdaq-100 could trigger $9 billion in outflows from passive funds. Meanwhile, [the firm's preferred stock yields, ranging from 9% to 13%](https://www.barrons.com/articles/strategy-mstr-preferred-stock-dividend-ae1767fc), remain attractive compared to traditional bank offerings but have dipped slightly following the announcement.

Strategy's move underscores a broader trend in corporate treasury management, where digital asset firms are adopting hybrid reserve strategies to mitigate liquidity risks. By maintaining dual reserves in USD and Bitcoin, the company [aims to stabilize its dividend commitments while continuing to expand its BTC holdings](https://marketchameleon.com/articles/b/2025/12/1/strategys-1-44-billion-reserve-now-covers-21-months-of-dividends-what-this-means-for-fy-2025-guidance-and-bitcoin-exposure). However, critics caution that selling Bitcoin—even as a last resort—could trigger a self-reinforcing downturn, [as highlighted by CryptoQuant CEO Ki Young Ju](https://cryptoslate.com/strategy-new-last-resort-to-sell-bitcoin-could-trigger-on-15-dip-sets-1-4b-cash-reserve-contingency/), who warned of a potential "death spiral".

The company's updated guidance and reserve strategy highlight its dual challenge: balancing aggressive Bitcoin accumulation with the need for financial discipline. As the market digests these developments, investors will closely watch both Bitcoin's price trajectory and Strategy's ability to execute its capital-raising plans without eroding shareholder value [according to reports](https://seekingalpha.com/news/4526900-strategy-establishes-144b-usd-reserve-to-navigate-market-volatility-updates-guidance).