Strategy Inc., formerly known as MicroStrategy, has solidified its position as a leading Bitcoin treasury company by establishing a $1.44 billion U.S. dollar reserve and increasing its total Bitcoin holdings to 650,000 BTC. This strategic move underscores the company's continued commitment to Bitcoin as a core treasury asset while ensuring financial stability through a substantial cash buffer.
The company announced the purchase of an additional 130 Bitcoins for approximately $11.7 million, with an average price of $89,960 per coin. This acquisition, executed between November 17 and November 30, brings Strategy's total Bitcoin holdings to 650,000 BTC, representing over 3% of Bitcoin's total supply and valued at around $56 billion. The purchases were funded through at-the-market sales of the company's Class A common stock (MSTR).
In addition to increasing its Bitcoin reserves, Strategy has created a $1.44 billion U.S. dollar reserve. This reserve is intended to support dividend payments on preferred stocks and interest payments on outstanding debt. The decision to establish this reserve reflects a strategic approach to balancing Bitcoin investments with traditional financial obligations. The company aims to maintain a cash reserve sufficient to cover at least 12 months of dividend payments, with a long-term goal of extending this to 24 months or more.
Michael Saylor, Strategy's Executive Chairman, has consistently championed Bitcoin as a superior treasury asset. Despite market volatility and pressures, Saylor has reaffirmed the company's long-term dedication to Bitcoin. This commitment is rooted in the belief that Bitcoin serves as an effective hedge against inflation and offers long-term value appreciation.
Strategy's financial strategy, dubbed the "$42/42" plan, aims to raise $42 billion over the next three years through a combination of equity offerings and fixed-income securities, to further increase Bitcoin holdings. The company has already secured $6.8 billion in 2025 through at-the-market programs and preferred stock offerings.
The company's Q2 2025 financial results showed a record net income of $10.0 billion and EPS of $32.60. Operating income for the second quarter of 2025 was approximately $14.03 billion, a 7,106.4% increase year-over-year, which included an unrealized gain on the Company's digital assets of $14.0 billion.
Looking ahead, Strategy anticipates continued growth, with projections for a 2025 operating income of $34 billion and net income of $24 billion. The company also intends to increase its Bitcoin yield to 30% and expects a Bitcoin dollar gain of $20 billion.
Strategy also announced the appointment of Thomas C. Chow as Executive Vice President, General Counsel and Corporate Secretary, effective immediately. Chow's extensive experience in digital assets, fintech, and software is expected to be a valuable asset to the company.
Despite Strategy's optimistic outlook, some analysts remain cautious, with InvestingPro analysis indicating that analysts do not anticipate profitability this year, with an EPS forecast of -$15.03 for FY2025.
As Strategy continues to navigate the evolving landscape of digital assets, its strategic decisions regarding Bitcoin acquisitions and cash reserve management will be crucial in shaping its financial performance and market position.
