Strategy: Creating a $1.4 Billion Reserve and Purchasing More Bitcoin
Date: 2025-12-02 Author: Gabriel Deangelo Categories: BUSINESS
Strategy announced the creation of a large dollar reserve designed to finance future preferred share payments and debt servicing. The fund, which totals $1.44 billion, is considered by management to be a key element of financial stability during periods of crypto market volatility. The SEC filing clarifies that the reserve is designed to cover at least a one-year payment period, but plans to expand it to cover two years of obligations.
The company specifically emphasized that the structure of the fund and its use strategy remain entirely within its control. This means that the size of the reserve can be adjusted as needed, depending on liquidity needs and current market conditions. This approach allows Strategy not only to maintain flexibility but also to continue its chosen path without reducing its long-term investments in digital assets.
Almost immediately after the SEC filing, the company announced the expansion of its Bitcoin portfolio, acquiring an additional 130 BTC. The transaction cost approximately $11.7 million, with an average purchase price of approximately $89,960 per coin. Including this new acquisition, Strategy now owns 650,000 BTC, exceeding 3% of the total supply. At the current market valuation, this is equivalent to approximately $55 billion.
Company co-founder Michael Saylor emphasized that Strategy's average Bitcoin purchase price is currently $74,436. Even taking into account the recent price decline, he estimated unrealized gains at more than $7.6 billion, underscoring the long-term effectiveness of the accumulation strategy. The acquisitions are being financed primarily through the MSTR share offering. Over the past two weeks, the company has sold approximately 8.2 million shares, raising approximately $1.48 billion.
As of November 30, 2025, Strategy has unused issuance limits under its current ATM program: $13.37 billion for common shares and $30.2 billion for perpetual preferred shares. Management states that building this reserve should be viewed as the next stage in the development of its business model. Having a cash cushion will allow the company to more comfortably weather short-term market downturns without having to sell bitcoin, which is consistent with its strategy of long-term asset accumulation.
