Strategy Sells $1.4B in Stock to Cover Bills Amid Bitcoin Slump

Business intelligence and software firm Strategy, co-founded by Michael Saylor, has established a $1.44 billion U.S. dollar reserve, expanding its balance sheet approach and reinforcing its status as one of the largest corporate Bitcoin (BTC) holders, drawing attention from market analysts.

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Key Points

Strategy sold $1.44 billion in stock to establish a USD reserve, intended to cover dividend payments and interest obligations, providing liquidity amid volatile digital asset markets.
While creating the USD reserve, Strategy also expanded its Bitcoin holdings to 650,000 BTC. This dual approach aims to navigate volatility and position the firm as a leading issuer of Digital Credit.
The move drew mixed reactions, with Bitcoin skeptic Peter Schiff calling it the "beginning of the end" and a "fraud." Strategy also revised its FY2025 earnings guidance.

Saylor announced on X that Strategy also expanded its Bitcoin holdings to 650,000 BTC while creating the reserve. The fund, financed through ongoing at-the-market stock sales, is intended to support dividend payments on preferred stock and cover interest obligations, providing the company with additional liquidity amid volatile digital asset markets.

$MSTR announces the formation of a $1.44 billion USD Reserve and an increase in its BTC Reserve to 650,000 $BTC. pic.twitter.com/e1tAhDUo9G
— Michael Saylor (@saylor) December 1, 2025

“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution, and we believe 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,” Saylor stated in an official announcement by Strategy.

“Strategy now holds 650,000 bitcoin, about 3.1% of the 21 million bitcoin that will ever exist. In recognition of the important role we play in the broader Bitcoin ecosystem, and to further reinforce our commitment to our credit investors and shareholders, we have established a USD Reserve that currently covers 21 months of Dividends,” Phong Le, President and CEO, stated. “We intend to use this reserve to pay our Dividends and grow it over time,” he added.

Additionally, Strategy has revised its FY2025 earnings guidance in response to recent declines in Bitcoin’s market price. The company projects that if Bitcoin closes 2025 between $85,000 and $110,000, operating income could range from a $7.0 billion loss to a $9.5 billion gain, while net income may vary from a $5.5 billion loss to a $6.3 billion profit.

Diluted earnings per share are estimated between a $17.0 loss and $19.0 profit. These forecasts assume the successful execution of planned capital raises, enabling Strategy to meet its 2025 Bitcoin Yield Target and reinvest proceeds into additional Bitcoin acquisitions.

Strategy’s announcement garnered widespread attention from both the crypto community and market analysts. Among the notable reactions, prominent Bitcoin skeptic Peter Schiff shared his perspective on X, adding to the discussion surrounding the company’s expanded digital-asset strategy.

Today is the beginning of the end of $MSTR. Saylor was forced to sell stock not to buy Bitcoin, but to buy U.S. dollars merely to fund MSTR's interest and dividend obligations. The stock is broken. The business model is a fraud, and @Saylor is the biggest con man on Wall Street.
— Peter Schiff (@PeterSchiff) December 1, 2025

“Today is the beginning of the end of $MSTR. Saylor was forced to sell stock not to buy Bitcoin, but to buy U.S. dollars merely to fund MSTR’s interest and dividend obligations,” Schiff wrote. The Bitcoin critic also argued that the stock is broken and that Strategy’s business model is a fraud, further stating that Saylor is “the biggest con man on Wall Street.”

The CEO of Polygon Foundation, Sandeep Nailwal, also expressed his concerns about the matter in a post on X. “I just wish, hope, and pray that MSTR is not the LUNA of this cycle. Another public, but this time, Wall Street–retail-entangled death spiral is the last thing this industry needs,” Nailwal wrote. “Hoping Saylor can pull some Wall Street voodoo magic,” he added.

I just wish, hope, and pray that MSTR is not the LUNA of this cycle. Another public, but this time, Wall Street–retail-entangled death spiral is the last thing this industry needs. Hoping Saylor can pull some Wall Street voodoo magic.

— Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) December 1, 2025

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Frequently Asked Questions

Strategy executed the $1.44 billion stock sale to establish a dedicated USD reserve designed to cover dividend payments and interest obligations. This liquidity buffer allows the company to navigate heightened volatility in the digital asset market while maintaining operational stability and financial flexibility.

The USD reserve complements Strategy’s existing Bitcoin reserve, forming a dual-asset structure intended to support predictable cash obligations while enabling continued BTC accumulation. Leadership positioned this as a strategic evolution toward becoming a leading issuer of Digital Credit.

Strategy has expanded its holdings to 650,000 BTC, representing approximately 3.1% of Bitcoin’s total eventual supply. This concentration underscores the firm’s central role in the Bitcoin ecosystem and reinforces its long-term conviction in BTC as a reserve asset.

The company now projects FY2025 operating income ranging from a $7.0 billion loss to a $9.5 billion gain, depending on Bitcoin’s year-end price between $85,000 and $110,000. Net income is expected to range from a $5.5 billion loss to a $6.3 billion profit, with diluted EPS projected between a $17.0 loss and a $19.0 gain.

Responses have been mixed. Bitcoin critic Peter Schiff called the development a sign of structural weakness and labeled Strategy’s model a fraud. Conversely, industry leaders such as Polygon Foundation CEO Sandeep Nailwal voiced concern about systemic risk but expressed hope that Strategy can stabilize its position without triggering broader market disruption.

MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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