Strategy Unveils Dollar Reserve to Soothe Bitcoin Sales Concern
December 1, 2025
(Bloomberg) — Strategy Inc. said it had created a $1.4 billion reserve to fund future dividend and interest payments, tempering concern that the Bitcoin accumulator may be forced to sell some of its roughly $56 billion cryptocurrency haul if token prices continue to fall.
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The Tysons Corner, Virginia-based company said in a statement on Monday that the new reserve, funded by proceeds from the sale of shares of class A common stock, would cover at least 21 months of dividend payments. Over time, it plans to maintain enough cash in the reserve to cover up to two years of payments.
Strategy’s mNAV — a key valuation metric comparing the firm’s enterprise value to the value of its Bitcoin holdings — sat at about 1.2 on Monday, according to its website, spurring investor fears it may soon turn negative. If that were to happen, its CEO Phong Le had suggested the firm could sell some of its Bitcoin.
“We can sell Bitcoin and we would sell Bitcoin if we needed to fund our dividend payments below 1x mNAV,” Le said on a podcast on Friday, noting that it would only be carried out as a last resort.
Shares in Strategy had fallen more than 5% in pre-market trading on Monday, while Bitcoin was down about 6%. The stock pared those losses after the reserve was announced.
Formerly known as MicroStrategy, the company’s main business has switched from software development to primarily holding Bitcoin. In order to finance purchases of the cryptocurrency, it has been raising equity as well as preferred stock. The software business doesn’t generate enough free cash flow to cover the dividend or interest payments. Bitcoin doesn’t pay a dividend.
Investors historically have looked to Strategy’s steady accumulation of Bitcoin as a signal of confidence in cryptocurrency markets, while sales might herald concern. After a week of not adding to its Bitcoin pile, Strategy purchased 130 Bitcoin for an aggregate price of $11.7 million. It used common shares to fund the purchase.
“There’s the mathematical side of me that says that would be absolutely the right thing to do, and there’s the emotional side of me, the market side of me, that says we don’t really want to be the company that’s selling Bitcoin,” Le added in the podcast. “Generally speaking, for me, the mathematical side wins.”
The company also updated its full-year earnings guidance, having previously issued a forecast in October based on the assumption that Bitcoin would be worth $150,000 by the end of 2025. Now assuming a price range of between $85,000 and $110,000, Strategy said it expects to report operating income that could range from a loss of $7 billion to a profit of $9.5 billion. The range varies so widely because accounting guidelines require Strategy to value its Bitcoin holdings at market value at the end of the quarter.
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