Bitcoin: Strategy Creates Historic Reserve of $1.4 B

Despite the increased market volatility, Michael Saylor reaffirms his bet on Bitcoin. His company Strategy has indeed just reached a new milestone by combining crypto and traditional finance. We give you all the details in the following paragraphs.

A Double Reserve to Stabilize Saylor’s Bitcoin Empire

Facing the volatility of the crypto market, Strategy no longer settles for a mere accumulation of bitcoin. It also launches a massive cash reserve, intended to support dividends on its preferred shares. The total amount stands at $1.44 billion, funded by a flash sale of MSTR shares in less than nine days.

This financial buffer represents 2.4% of Strategy’s bitcoin holdings value. It is intended to ensure the company’s stability in case of turbulence. The ultimate goal? Cover 24 months of dividends.

At the same time, the company additionally acquired 130 BTC for $11.7 million. This brings its holdings to 650,000 bitcoins. This represents 3.1% of the crypto asset’s maximum supply.

2025 Targets Revised Downward Despite Strong Commitment

Not everything is euphoric in Saylor’s camp. Despite its record reserves, Strategy indeed seems to adjust its bitcoin forecasts for 2025. The expected BTC yield now ranges between 22% and 26%, with a price projection between $85,000 and $110,000 by year-end.

Profit expectations have also been lowered from $20 billion to a range of $8.4 to $12.8 billion. The targeted operating income is similarly adjusted down from $34 billion to between $7 and $9.5 billion.

For many crypto analysts, this recalibration does not cancel out Strategy’s committed investment strategy. However, it signals increased caution.

In any case, Strategy seems to be gradually transforming into a hybrid model. This strategic shift could inspire other listed companies exposed to the crypto market. Michael Saylor’s bitcoin bet remains bold. Nonetheless, it is rooted in a more robust financial architecture.