Strategy Inc. (NASDAQ: STRF/STRC/STRK/STRD/MSTR; LUXSE: STRE) has announced the establishment of a USD reserve of $1.44 billion to support the payment of dividends on its preferred stock and interest on its outstanding indebtedness. This reserve was funded using proceeds from the sale of shares of class A common stock under Strategy’s at-the-market offering program. The company's current intention is to maintain a USD reserve in an amount sufficient to fund at least twelve months of its dividends, with the goal of ultimately covering 24 months or more of its dividends.
The company also provided updates to its assumptions underlying its previously issued forward guidance and Bitcoin key performance indicator (KPI) targets for the fiscal year ending December 31, 2025. The previous guidance assumed a Bitcoin price of $150,000 as of December 31, 2025, based on third-party research analyst year-end Bitcoin price estimates available at that time. However, due to the recent trading prices of Bitcoin, Strategy is updating its assumptions for the price of Bitcoin as of year-end 2025 to reflect a range of prices consistent with the recent trading history of Bitcoin.
Based on an assumed year-end 2025 Bitcoin price range of $85,000 to $110,000, the target ranges for Strategy’s FY2025 operating income, net income, and diluted earnings per share have been updated. The updated ranges assume the successful completion of capital raises to achieve Strategy’s FY2025 Bitcoin yield target and the deployment of proceeds from such raises to the purchase of Bitcoin.
Additionally, based on the same assumed year-end 2025 Bitcoin price range of $85,000 to $110,000, and after giving effect to Strategy’s anticipated common stock issuances to maintain its USD reserve, Strategy’s updated FY2025 Bitcoin KPI targets have been announced. The updated targets include the FY2025 Bitcoin yield target between 22.0% and 26.0% and the FY2025 Bitcoin gain target between $8.4 billion and $12.8 billion.
It is worth noting that Strategy's earnings results are extremely sensitive to and directly correlated with changes in the market price of Bitcoin, as the company measures its Bitcoin holdings at fair value, with gains and losses from changes in the fair value of Bitcoin recognized in net income (loss) at each reporting period.
As of now, investors are cautioned not to place undue reliance on this guidance, as Strategy can provide no assurance or guarantee as to the price of Bitcoin as of December 31, 2025, and its actual results may vary materially from the ranges of results set forth above if the market price of Bitcoin as of December 31, 2025, varies materially from the assumed range of Bitcoin prices. The market has reacted to these announcements by moving the company's shares 0.88% to a price of $177.18. For more information, read the company's full 8-K submission here.
