By Jove, old bean! The chap over at Strategy, Michael Saylor, has pulled a blinder, announcing a whopping $1.44 billion USD reserve. What ho! A jolly significant shift for the Bitcoin-focused treasury company, if I say so myself. 🧐💼
Strategy Whips Up a New USD Reserve, Dash It All!
In a ripper of a post on X, Saylor, the co-founder and chairman of Strategy, has let the cat out of the bag about this new reserve. Blighty’s finest would be proud! The reserve, a cool $1.44 billion, has been conjured up through the sale of class A common stock under their at-the-market (ATM) offering program. Top hole! 🎩💰
Since Strategy pivoted to being a Bitcoin treasury company back in 2020, they’ve been as keen on expanding their BTC holdings as Jeeves is on polishing silver. But this USD reserve? Well, it’s a bit of a spanner in the works, old sport. A shift, indeed! 🚀🔄
The current game plan for Strategy is to keep a USD reserve that can cover at least twelve months of dividends and interest payments (or “Dividends,” as they so quaintly call them). Eventually, they aim to stretch that to 24 months or more. Ambitious chaps, these! 📅💵
According to Phong Le, the company’s president and CEO, the new reserve can currently cover 21 months of Dividends. “We intend to use this reserve to pay our Dividends and grow it over time,” he chirped. Quite the optimist, that one! 🌱📈
Strategy has set up this reserve just as Bitcoin has taken a bit of a tumble, dropping to the low $80,000 levels from a high of $126,000 in October. Bit of a bearish turn, what? 🐻📉
Saylor chimed in, saying:
“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution, and we believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of Digital Credit.”
Quite the mouthful, eh? But I suppose that’s what one expects from a chap in his position. 🗣️🌍
Strategy has also tweaked its year-end target for Bitcoin, slashing its $150,000 assumption to a range between $85,000 and $110,000. Apparently, this is to reflect a range more consistent with recent BTC prices. How very sensible! 📉📊
Despite this USD reserve business, Strategy hasn’t stopped buying Bitcoin. Alongside the announcement, they’ve unveiled a new BTC acquisition. A modest 130 BTC, costing $11.7 million. Small potatoes compared to their usual splurges, but one mustn’t look a gift horse in the mouth, eh? 🥔🐎
With this purchase, Strategy now holds 650,000 BTC, which is a staggering 3.1% of the total Bitcoin supply cap. They’ve splashed out $48.38 billion on these holdings, putting their cost basis per token at $74,436. At the current BTC price, they’re still in the black by about 13.65%. Not too shabby! 🤑📈
Saylor’s firm is, without a doubt, the largest Bitcoin corporate treasury in the world, outpacing MARA Holdings by nearly 600,000 BTC. Talk about leading the pack! 🐺🏆
Bitcoin Takes a Header to $84,500
The past day has been a bit of a disaster for Bitcoin, with its price taking an 8% nosedive and wiping out much of its recent recovery. Initially, it plummeted to $86,000, but then took another leg down to $84,500 after Strategy’s USD reserve announcement. Seems investors aren’t too chuffed about the news. Oh, the drama! 😱📉
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2025-12-02 11:16