Strategy Inc., the firm once best known as MicroStrategy, said Monday it has raised cash and set aside a $1.44 billion US reserve to cover near-term obligations as Bitcoin tumbles. The move came after recent share sales and follows a brief buy of new coins, according to company statements and market reports.
Strategy Establishes $1.44B Cash Reserve
According to filings and market reports, the reserve was funded by selling Class A common stock under an at-the-market program and is meant to fund dividends on Strategy’s preferred shares and to help pay interest on its debt for at least 12 months, with a target to extend cover to 24 months or more. The company said it did not liquidate its Bitcoin stash to create the reserve.
The size of the company’s Bitcoin holdings remains unusually large. Based on reports, Strategy now holds about 650,000 BTC after a small recent purchase of roughly 130 BTC that cost about $11.7 million.
That hoard is still worth tens of billions of dollars at current prices, but price swings have put fresh pressure on a business built around holding the asset.
Strategy Inc. announced a $1.44 billion USD reserve to cover at least 12 months of preferred dividends and interest payments, funded through its at-the-market stock sales. The company now holds 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 reacted quickly. Strategy’s shares have fallen sharply this year, and analysts say the new cash buffer may calm some fears but won’t erase larger funding and debt timelines that loom over the company.
Strategy announces $1.44B USD Reserve and now hodls 650,000 $BTC. pic.twitter.com/FNFivMNQgh
— Strategy (@Strategy) December 1, 2025
Reports put convertible debt tied to past financing at about $8 billion, and company metrics show the market-to-Bitcoin ratio (mNAV) sliding 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 reserve as proof the model has failed, calling Michael Saylor a “conman” and saying Saylor is “finished.”
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
Other market voices urged caution, saying the move changes how investors should value the company — from a pure Bitcoin treasury play to an entity with ongoing cash obligations.
According to reports, Strategy also cut its 2025 profit and Bitcoin-linked yield targets after recent price moves, a sign that management is dealing with a less bullish near-term outlook than it expected earlier this year.
The reserve is meant to prevent forced sales of Bitcoin to meet fixed payouts, but holding cash has its own costs and raises governance questions among long-time backers.
Schiff’s Issue With Saylor
Schiff’s blistering attack — calling Saylor a fraud and declaring him done — adds a sharp political edge to what had been framed as a financial maneuver.
His claims amplify worries among some investors about Strategy’s governance and capital plan, even as others dismiss the remarks as partisan rhetoric.
Ultimately, whether Schiff’s accusations stick will depend less on social-media barbs than on Strategy’s next moves around debt, disclosure and any future coin sales — actions that will tell investors whether Saylor’s stewardship can weather this storm.
Featured image from Unsplash, chart from TradingView
