Strategy Builds $1.44B USD Reserve as Benchmark Dismisses Solvency Fears

Strategy — the world’s largest public Bitcoin holder — is taking a major step to fortify its balance sheet, unveiling a $1.44 billion U.S. dollar reserve designed to support dividend payments and debt servicing even in periods of heavy market volatility. 

The announcement arrives as Wall Street broker Benchmark issues a forceful rebuttal to renewed social-media fears about Strategy’s solvency amid Bitcoin’s latest price pullback.

A New USD Reserve to Stabilize Dividends and Debt Obligations

Strategy confirmed Monday that it has established a U.S. dollar reserve funded entirely through the sale of Class A common stock via its at-the-market (ATM) offering program. 

The reserve will serve as the primary source for paying dividends on preferred shares, interest on outstanding convertibles, and other corporate distributions.

The company said its initial intention is to maintain at least 12 months of dividend coverage, with a long-term goal of strengthening the reserve to cover 24 months or more.

In a statement, the firm emphasized that the reserve enhances the quality and attractiveness of its preferred shares, debt, and common stock. 

It noted that it managed to raise the full $1.44 billion in less than nine trading days, an indicator of investor demand even as Bitcoin trades below recent highs.

According to the update, the reserve represents:

• 2.2% of the company’s enterprise value
• 2.8% of its equity value
• 2.4% of its Bitcoin holdings by market value

The reserve gives Strategy an additional buffer that coexists with — rather than replaces — its long-standing Bitcoin accumulation strategy.

Saylor: USD Reserve Is “Next Step” in Treasury Evolution

Founder and executive chairman Michael Saylor framed the new reserve as part of a broader maturation in Strategy’s treasury management strategy.

“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution,” Saylor said, stressing that the reserve equips the company to better navigate sudden market dislocations without diverting from its Bitcoin-first approach.

Strategy CEO and president Phong Le noted that the reserve already covers 21 months of dividends, calling it a key signal to credit investors and the wider Bitcoin ecosystem of the company’s stability and long-range outlook.

The company also disclosed that it purchased 130 BTC for $11.7 million over the past two weeks, pushing its total Bitcoin holdings to a symbolic 650,000 BTC — roughly 3.1% of all Bitcoin that will ever exist. Strategy has invested $48.38 billion into Bitcoin since 2020.

Strategy BTC holdings (Source: Bitcoin Treasuries)

Benchmark Report Calls Insolvency Concerns “Noise”

The reserve announcement coincided with a sharply worded research note from Wall Street broker Benchmark, which criticized what it described as an exaggerated and cyclical panic about Strategy’s solvency — panic that resurfaces whenever Bitcoin falls.

Bitcoin was trading around $84,122, down roughly 8% at the time of publication, and had seen heightened volatility throughout the week. Strategy shares traded 4.7% lower at $168.82 during early Monday trading.

BTC price (Source: CoinGecko)

Benchmark analyst Mark Palmer argued that market chatter is ignoring the company’s structurally advantaged balance sheet, calling Strategy’s financial condition far sturdier than detractors claim.

The company’s capital instruments, especially perpetual preferreds, give Strategy access to permanent capital without refinancing cliffs, allowing the company to maximize long-duration Bitcoin exposure while limiting liquidity risk.

Benchmark estimated that Bitcoin would need to fall to approximately $12,700 — an 86% decline — and remain at that level before the company’s debt structure would face material stress. Palmer labeled that outcome highly improbable given the current institutionalization of the Bitcoin market and the expanding base of ETF, corporate, and sovereign buyers.

He reaffirmed his buy rating on Strategy stock and maintained a $705 price target, anchored to a Bitcoin price assumption of $225,000 by 2026. The analyst said the latest pullback does not alter our view.

Strategy share price (Source: Google Finance)

A Stronger Foundation Amid a Volatile Market

The combined message from Strategy and Benchmark is clear: the company is building tools to better withstand short-term turbulence without compromising its long-term Bitcoin-led strategy.

The USD Reserve gives the company a dedicated dividend and interest funding base that does not rely on cash flow or opportunistic equity issuance — and critically, does not require selling Bitcoin except in a worst-case scenario. Saylor has repeatedly said the company would only liquidate BTC “as a last resort.”

By pairing permanent capital structures with a flexible fiat reserve, Strategy appears to be evolving into a hybrid treasury model that blends Bitcoin maximalism with traditional corporate risk-management techniques.

Lowered 2025 KPI Targets Reflect Market Adjustments

Despite the upbeat tone around the reserve and balance sheet, Strategy also revised its 2025 performance expectations downward, citing updated assumptions about market conditions and yield generation.

The company now forecasts:

• BTC yield at 22%–26% by year-end
• Year-end BTC price between $85,000 and $110,000
• BTC gains between $8.4 billion and $12.8 billion, down from a prior $20 billion target
• Operating income between $7 billion and $9.5 billion, sharply lower than the earlier $34 billion projection

Even with these reductions, Benchmark sees Strategy as the “clear standout” in the digital-asset-treasury (DAT) sector — outperforming peers through scale, leverage efficiency, and unique access to permanent capital.

A Company Built for Bitcoin Volatility

As the digital-asset market continues to navigate liquidity strains, ETF flow volatility, and macro uncertainty, Strategy’s dual-reserve approach — massive Bitcoin holdings backed by a newly fortified fiat cushion — represents a treasury model unlike anything else in corporate America.

And despite critics resurfacing with every price dip, Benchmark and Strategy’s leadership agree on one point: the company appears structurally built not only to survive Bitcoin volatility, but to capitalize on it.