Strategy Inc., the company once best known as MicroStrategy, said Monday it has raised money and set aside a $1.44 billion U.S. reserve to cover short-term liabilities if Bitcoin plummets. The move came after recent stock sales and follows a short purchase of new coins, according to company statements and market reports.
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Strategy establishes a cash reserve of $1.44 billion
According to registrations and market reportsthe reserve was funded by the sale of Class A common stock under an at-the-market program and is intended to fund dividends on Strategy’s preferred stock and to help pay interest on its debt for at least twelve months, with the goal of renewing interest. cover up to 24 months or longer. The company said it did not liquidate its Bitcoin supply to create the reserve.
The size of the company’s Bitcoin holdings remains unusually large. Based on reports, Strategy now owns around 650,000 BTC, after a small recent one purchase of approximately 130 BTC costing approximately $11.7 million.
That treasure is still worth tens of billions of dollars at today’s prices, but price swings have put new pressure on a business built around owning the asset.
Strategy Inc. has announced a reserve of $1.44 billion USD to cover at least twelve months of preferred dividends and interest payments, funded by the sale of shares in the market. The company now owns 650,000 BTC and says the reserve will help manage volatility. https://t.co/i4X1J62Qel
— Wu Blockchain (@WuBlockchain) December 1, 2025
Bitcoin: Market Reaction and Risks
Investors responded quickly. Strategy’s shares have fallen sharply this year, and analysts say the new cash cushion may allay some fears but won’t erase the larger financing and debt maturities looming over the company.
Strategy announces a reserve of $1.44 billion and now has 650,000 $BTC. pic.twitter.com/FNFivMNQgh
— Strategy (@Strategy) December 1, 2025
According to reports, convertible debt tied to past financing is around $8 billion, and company metrics show the market-to-Bitcoin ratio (mNAV) is getting closer to levels where management has said it might consider selling coins only as a last resort.
Peter Schiff, a well-known Bitcoin critic, took to social media after the announcement and described the to book as evidence that the model has failed, Michael called Saylor a “con artist” and said Saylor was “done.”
Today is the beginning of the end of $MSTR. Saylor was forced to sell shares, not to buy Bitcoin, but to buy US 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 scammer on Wall Street.
— Peter Schiff (@PeterSchiff) December 1, 2025
Other voices in the market urged caution, saying this move changes the way investors should value the company – from a pure Bitcoin treasury play to an entity with ongoing cash obligations.
According to reports Strategy also cut 2025 earnings targets and Bitcoin-linked return targets after recent price moves, a sign that management is facing a less bullish near-term outlook than expected earlier this year.
The reserve is intended to prevent forced sales of Bitcoin to meet fixed payouts, but holding cash comes with its own costs and raises governance questions for long-time donors.
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Schiff’s problem with Saylor
Schiff’s blistering attack — calling Saylor a fraud and declaring him done — adds a sharp political edge to what was presented as a financial maneuver.
His claims heighten concerns among some investors about Strategy’s governance and capital plan, even as others dismiss the comments as partisan rhetoric.
Whether Schiff’s accusations stick will ultimately depend less on social media backlash than on Strategy’s next steps on debt, disclosure and possible future coin sales — actions that will tell investors whether Saylor’s stewardship can weather this storm.
Featured image from Unsplash, chart from TradingView