Major Strategy Shifts: $1.44B Cash Cushion Set, Bitcoin Target Soars to 110K
A major player just made a power move—parking a staggering $1.44 billion in cash and cranking its Bitcoin price target to a bold 110K. This isn't just a tweak; it's a full-scale strategic pivot signaling deep conviction in the digital asset's runway.
The War Chest Strategy
Building a cash reserve of that magnitude screams preparation. It's dry powder for volatility, ammunition for opportunistic buys, and a classic hedge against the market's inevitable mood swings. In traditional finance, they'd call it prudent. In crypto? It's a calculated bet on having the liquidity to strike when others are scrambling.
Raising the Stakes on Bitcoin
Lifting the BTC target to 110,000 isn't a gentle nudge—it's a declaration. It suggests a fundamental reassessment of Bitcoin's value drivers, from institutional adoption to its hardening role as a digital reserve asset. The move implicitly dismisses current price levels as a mere waypoint, not a destination.
Reading Between the Lines
This dual-action play—fortifying the balance sheet while upping the ante on price—paints a picture of aggressive confidence. They're not just bullish; they're preparing to back that belief with capital, positioning to navigate and capitalize on the next leg up, whatever it brings. It's the kind of move that makes other funds check their own models—and maybe their nerve.
Ultimately, it's a masterclass in positioning: hope for the best, plan for the worst, and always keep a billion or two handy to prove the Wall Street skeptics wrong—again.
A 21-month dividends plan
In the press release, CEO and President Phong Le said the reserve currently covers 21 months of dividends, and the company aims to expand it to cover 24 months or more.
Executive Chairman Michael Saylor described the reserve as a step in Strategy’s evolution, stating, “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.”
Updated 2025 profit and Bitcoin plans
Strategy updated its 2025 profit guidance and Bitcoin targets. Previously, the company assumed Bitcoin WOULD reach $150,000 by the end of 2025. However, the prices fell from $111,612 on October 30 to $80,660 on November 21. As of today, Bitcoin is trading for $86,212, according to data from CoinMarketCap.
Now, the company expects a year-end Bitcoin price between $85,000 and $110,000. Based on this, it projects FY2025 operating income between $(7.0) billion and $9.5 billion, net income between $(5.5) billion and $6.3 billion, and diluted earnings per share from $(17.0) to $19.0.
The firm also updated its Bitcoin performance expectations. The BTC yield is now expected to be 22% to 26%, and the total Bitcoin gains could reach $8.4 billion to $12.8 billion. Strategy said it expects to reach these targets by selling preferred stock, carefully issuing common stock, and buying more Bitcoin.
Recently, the company acquired 130 BTC for $11.7 million, increasing its total holdings to 650,000 BTC, purchased for $48.38 billion at an average of $74,436 per coin.
Strategy now follows new accounting rules (ASU 2023-08), which means it must measure Bitcoin at its fair market value. This means earnings will change with Bitcoin prices, and the company warns that results may vary if the market price differs from the assumed range. Phong Le also noted that selling Bitcoin would be a last resort to fund dividends.
Also Read: Strategy Shows Strong BTC Debt Coverage Down to $25K Price Level
