Strategy (MSTR) announced a major financial move on Monday, establishing a $1.44 billion U.S. dollar reserve designed to safeguard against short-term market volatility. Shares fell 4.53% pre-market to $169.15, while Bitcoin (BTC-USD) briefly dipped below $90,000 during U.S. pre-market trading.

Purpose of the USD Reserve

Supports preferred stock dividend payments
Provides stability for interest payments on existing debt
Intended to maintain at least 12 months of dividends and interest obligations
Funded through the sale of Class A shares via the at-the-market offering program
Structure, terms, and reserve levels remain at the company's discretion

Strategic Rationale

Founder & Executive Chairman Michael Saylor stated the USD reserve complements the firm’s BTC holdings and strengthens flexibility:

“It will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of digital credit.”

Updated 2025 Guidance Based on Revised Bitcoin Assumptions

The company also issued updated assumptions underlying its previously released fiscal-2025 guidance.

Previous Guidance (Reaffirmed on Oct 30)

Adjusted EPS: $80 (vs. $42.29 consensus)
Operating Income: $34B (vs. $14.0B Visible Alpha estimate)
Assumed BTC price: $150,000 by Dec 31, 2025

Bitcoin Price Decline

Since October 30:

BTC fell from $111,612 → as low as $80,660 (Nov 21)

Updated Outlook Under New BTC Range ($85K–$110K)

Operating Income (Loss): $(7.0)B to $9.5B
Net Income (Loss): $(5.5)B to $6.3B
Diluted EPS: $(17.0) to $19.0 per share

BTC Performance Targets for 2025

Strategy reiterated its crypto-linked performance targets, assuming successful capital raises:

BTC Yield Target: 22.0% – 26.0%
BTC $ Gain Target: $8.4B – $12.8B