Saylor Changes Strategy: New $1.44 Billion USD Reserve Unveiled

Bitcoin treasury companies have significantly increased their holdings, now controlling approximately 5% of the total Bitcoin supply, with Strategy leading the way by holding 650,000 BTC. Despite market fluctuations, these companies, including Metaplanet and MARA, continue to accumulate Bitcoin, indicating a strong belief in its long-term value.

Strategy has outlined its Bitcoin plan, detailing the conditions that could trigger future sales and emphasizing the importance of understanding market updates within the right context. This approach aims to clarify the company's strategy amidst ongoing market fluctuations.

Strategy Inc., formerly known as MicroStrategy, has established a $1.44 billion cash reserve to address short-term obligations amid a decline in Bitcoin prices. This reserve was funded through the sale of Class A common stock and is intended to cover dividends and interest payments for at least 12 months, with plans to extend this period if necessary.

Strategy has reduced its 2025 Bitcoin yield targets and built a $1.44 billion cash reserve, highlighting the volatility associated with corporate Bitcoin exposure. This pivot reflects a strategic shift towards direct investments in the Bitcoin ecosystem, particularly in Layer-2 infrastructure like Bitcoin Hyper, which offers enhanced transaction capabilities.

Trading volume in Strategy shares surged to 42.9 million, marking the highest level since last December, as the stock price fell by 3.25%. This increase in trading activity comes amid ongoing volatility in the cryptocurrency market, particularly affecting companies heavily invested in Bitcoin.

Michael Saylor, the executive chairman of Strategy, hinted at a significant announcement coming on Monday through a playful change in his Sunday social media post, shifting from orange to green dots. This suggests a potential strategic pivot or new initiative from the company in the cryptocurrency space.

Strategy CEO Phong Le announced that the company would consider selling Bitcoin as a last resort if its stock falls below net asset value and funding options become unavailable, emphasizing a financial decision-making process.