Strategy Inc. Establishes $1.44B Reserve Amid Bitcoin Downturn

Strategy Inc. announced a $1.44 billion USD reserve on December 1, 2025. This reserve aims to fund dividends and interest payments for 21 months, thus avoiding Bitcoin sales during market downturns, as highlighted in TradingView.

The company, led by Fong Lee and Michael Saylor, holds 650,000 Bitcoin valued at about $59 billion. This move reduces reliance on Bitcoin sales to fund obligations, presenting a new financial strategy amid volatile crypto markets. Michael Saylor, Executive Chairman of Strategy Inc., elaborated on this approach:

“The Bitcoin reserve is a ‘reactor’ and the USD reserve a ‘battery’ designed to smooth volatility. We can raise cash for dividends by selling a small portion of Bitcoin or using derivatives.”

Mixed Reactions to Strategy Inc.’s Reserve Creation

The creation of this reserve could stabilize Strategy Inc.’s cash flow. However, community reactions are mixed, with some viewing the USD reserve as contrary to Bitcoin maximalist principles. More perspectives can be found on Aggressive News.

Financially, the reserve allows coverage for expected downturns, maintaining dividend integrity without selling valuable Bitcoin. The strategy, aligning with past practices, offers a buffer against asset volatility, but stock prices remain weak, as further analyzed on Bloomberg Tax.

Strategy Inc.’s Reserve: A Rare Corporate Move

This approach reflects Strategy Inc.’s historical practice since 2020 of prioritizing Bitcoin accumulation over liquidation. It marks a novel risk mitigation method rarely seen in corporate treasury strategies at this scale. Insights on similar strategies can be found on Rolling Out.

Experts suggest that while the move supports financial stability, potential regulatory scrutiny could follow. Historical data shows market shifts when such reserves are implemented, highlighting the company’s significant role in Bitcoin’s institutional landscape.