MicroStrategy Establishes $1.4 Billion Reserve Amid Bitcoin Market Struggles

Tysons Corner, Virginia – MicroStrategy, the world’s largest Bitcoin Treasury firm, has announced the creation of a $1.4 billion reserve to bolster its financial standing amid fluctuating cryptocurrency prices. The move aims to ease shareholder concerns regarding the company’s substantial Bitcoin holdings, valued at nearly $56 billion.

The reserve, which was established on December 1, 2025, is funded through proceeds from the sale of class A common stock. This financial cushion is designed to cover at least 21 months of dividend and interest payments, reflecting the company’s commitment to maintaining stability in uncertain market conditions.

“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution,” said Michael Saylor, founder of MicroStrategy. “We believe it will better position us to navigate short-term market volatility.”

MicroStrategy holds approximately 650,000 BTC, representing about 3% of the total Bitcoin supply. The company’s exposure to the volatile crypto market has raised fears among investors, especially as Bitcoin’s price recently dropped from a peak of over $111,000 in late October to as low as $80,660 in November. This decline has impacted the company’s market to net asset value ratio, which fell from 3.4x to 1x.

In light of these changing conditions, MicroStrategy has revised its end-of-year Bitcoin price forecast from an earlier projection of $150,000 to a new range of $85,000 to $110,000. The company now anticipates that its operating income could fluctuate between a loss of $7 billion and a profit of $9.5 billion by the end of 2025, with net income ranging from a deficit of $5.5 billion to a surplus of $6.3 billion.

While shareholders may have expressed concerns about dilution, the establishment of this multi-billion-dollar reserve is expected to address these worries. As MicroStrategy continues to consider further acquisitions of Bitcoin, the reserve provides a financial safety net against the unpredictable nature of the cryptocurrency market.