Strategy Inc has announced a significant expansion of its Bitcoin treasury and the establishment of a $1.44 billion USD reserve, reinforcing its position as a major institutional Bitcoin holder.
The company purchased an additional 130 BTC for approximately $11.7 million at an average price of $89,960 per Bitcoin, bringing its total holdings to 650,000 BTC. The cumulative investment in Bitcoin now stands at around $48.38 billion, with an average acquisition cost of $74,436 per coin.
Alongside the Bitcoin accumulation, Strategy Inc created a dedicated USD Reserve funded through at-the-market issuances of Class A common stock. This reserve is designed to cover preferred dividend payments and interest on debt obligations for at least 12 months, with a long-term target of 24 months or more. Founder and Executive Chairman Michael Saylor stated, "Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution," highlighting the move as a strategic milestone to enhance resilience during market volatility.
President and CEO Phong Le emphasized that the reserve currently covers 21 months of dividends, providing a key safeguard for shareholders as the company scales its digital-asset approach.
Due to recent Bitcoin price volatility, Strategy Inc revised its earnings guidance for fiscal year 2025. The company now projects a year-end BTC price range of $85,000 to $110,000, down from earlier assumptions of $150,000. Corresponding updates include operating income between –$7.0 billion and $9.5 billion, net income between –$5.5 billion and $6.3 billion, and diluted EPS between –$17.0 and $19.0.
The company has set new performance targets: a BTC Yield Target of 22.0% to 26.0% and a BTC Dollar-Gain Target of $8.4 billion to $12.8 billion. These goals are expected to be achieved through preferred-stock offerings, disciplined equity issuance, and continued Bitcoin accumulation.
Strategy Inc's dual-reserve model, combining a substantial Bitcoin Reserve with the new USD Reserve, aims to strengthen its position as a leading issuer of Digital Credit while bolstering shareholder confidence.
