Michael Saylor's Strategy announces $1.44B dollar reserve as stock slumps

Michael Saylor's Strategy (NASDAQ: MSTR) announced connected Dec. 1 that it has created a $1.44 cardinal United States dollar (USD) reserve to enactment dividend payments connected preferred banal and work its indebtedness obligations, according to a caller filing with the U.S. Securities and Exchange Commission (SEC).

The institution said the fund, dubbed the “USD Reserve,” was financed done proceeds from its at-the-market banal offering.

Strategy aims to support a equilibrium capable to screen astatine slightest 12 months of dividends, with semipermanent plans to widen that sum to 24 months oregon more.

“Establishing a USD Reserve to complement our BTC Reserve marks the adjacent measurement successful our evolution,” Saylor said. 

“We judge it volition amended presumption america to navigate short-term marketplace volatility portion delivering connected our imaginativeness of being the world’s starring issuer of Digital Credit.”

The institution besides confirmed it present holds 650,000 Bitcoin (BTC), representing astir 3.1% of the full proviso that volition ever exist.

MicroStrategy banal has plunged much than 60% from its highest arsenic MSTR trades adjacent $177, extending a month-long diminution driven by weaker Bitcoin prices and shifting marketplace sentiment.

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For implicit 4 years, Strategy operated connected a elemental playbook, which is to person each disposable dollar into Bitcoin. The caller “USD Reserve,” funded done its at-the-market banal program, marks a structural alteration successful however the institution manages risk.

But with the company’s modified NAV (mNAV) falling to 1, meaning Strategy’s equity worth is present trading astir astatine the worth of its underlying Bitcoin holdings with nary premium from the market, Saylor is moving to stabilize the equilibrium sheet

By holding capable currency to screen 12–24 months of payouts, Strategy is efficaciously insulating itself from short-term Bitcoin volatility portion continuing to accumulate BTC, which present totals 650,000 coins, oregon astir 3.1% of each Bitcoin that volition ever exist.

The determination besides positions Strategy to grow Saylor’s semipermanent imaginativeness of becoming the world’s starring issuer of “Digital Credit,” a strategy that relies connected unchangeable currency flows alternatively than axenic BTC appreciation.

In the aforesaid filing, Strategy revised its fiscal twelvemonth 2025 (FY2025) guidance, adjusting its assumptions for Bitcoin’s year-end terms owed to caller marketplace declines.