Strategic Reserve Details
Strategy’s new reserve, valued at over $1.44 billion, will be managed independently from its Bitcoin reserve. The primary objectives of this reserve include handling cash dividends for preferred stock classes, covering short‑term liquidity needs during periods of tight capital markets, and managing interest payments on outstanding convertible bonds. Additionally, the reserve will bolster Strategy’s balance sheet by providing cash coverage for fixed obligations over the next 12‑24 months.
This dual‑reserve model, comprising long‑duration Bitcoin holdings and short‑duration U.S. dollar liquidity, is designed to reduce the risk of selling Bitcoin during market downturns. While Bitcoin remains central to Strategy’s long‑term thesis, the company is adopting a framework that protects its holdings through cash buffers and hedging strategies.
Shift in Strategy’s Approach
The establishment of the USD reserve marks a significant departure from Strategy’s previous focus on accumulating Bitcoin. Over the past year, the company’s Bitcoin purchases have been declining steadily. From acquiring 134,000 BTC in November 2024 and 59,700 BTC in December 2024, the purchases dropped to 31,500 BTC in July 2025 and further to 9,100 BTC last month. So far this month, Strategy has only acquired 135 BTC.
This shift reflects a broader change in Strategy’s approach, moving from issuing equity and convertible bonds to buy Bitcoin to creating a model that protects its existing holdings and business interests.
Market Impact
Strategy’s move is expected to have a notable impact on the Bitcoin market. On one hand, reduced buying activity could soften demand for Bitcoin. On the other hand, the establishment of the USD reserve is likely to decrease the probability of distressed Bitcoin selling, providing a measure of stability to the market.
Conclusion
Strategy’s decision to create a $1.44 billion USD reserve underscores the company’s adaptive approach in response to changing market conditions. By balancing its long‑term commitment to Bitcoin with short‑term financial prudence, Strategy aims to navigate the current bearish market while safeguarding its assets and shareholder interests.
