Strategy Creates a $1.44 Billion Dollar Reserve to Support Its Bitcoin Treasury Model
Strategy established a $1.44 billion U.S. dollar reserve funded through common-stock sales to support preferred-stock dividends and debt interest, adding a cash-liquidity layer to a corporate structure built around a massive Bitcoin treasury.
On December 1, 2025, Strategy announced that it had established a $1.44 billion U.S. dollar reserve to support dividends on its preferred stock and interest on outstanding debt. The company said the reserve had been funded through sales of Class A common stock under its at-the-market program and initially represented enough liquidity to cover at least twelve months of those obligations.
The move added a new layer to Strategy’s increasingly complex Bitcoin-centered capital structure. The company had spent years raising money through common equity, convertible debt, and several classes of preferred stock to accumulate Bitcoin. Those securities created recurring cash obligations even though Strategy’s defining treasury asset did not itself produce cash flow.
Creating a dedicated dollar reserve addressed that mismatch. Strategy said it intended to strengthen the reserve over time, with a goal of ultimately covering twenty-four months or more of preferred dividends and debt interest. The reserve therefore became a buffer between the company’s Bitcoin holdings and the cash payments required by the securities it had issued to finance its treasury strategy.
The announcement arrived during a sharp late-2025 Bitcoin downturn and growing scrutiny of digital-asset treasury companies. It showed that the corporate Bitcoin model had matured beyond simply raising capital and buying coins: balance-sheet resilience, dividend coverage, liquidity management, and access to equity markets had become central parts of sustaining a leveraged Bitcoin treasury at scale.