MicroStrategy Fortifies Finances with $1.44B Reserve, Lowers BTC Yield Expectations

• MicroStrategy puts $1.44 billion in cash aside to pay dividends on preferred stock and interest on debt.
• The company lowers its Bitcoin yield target for 2025 from 30% to 22–26% because it expects prices to go down.
• The range for net income in 2025 is now between a $5.5 billion loss and a $6.3 billion gain.
• Last week, I bought 130 more Bitcoin, bringing my total to 650,000 BTC, which is worth about $48.38 billion.

MicroStrategy, a software company that has become a major player in the Bitcoin market, made news today with a series of financial updates that show how committed it is to cryptocurrency.
The reserve was made possible by selling 8.214 million shares of common stock for $1.478 billion. Its goal is to cover at least 12 months of dividend payments, with a goal of 24 months or more.

According to CEO Phong Le, it can handle about 21 months right now. This move eases investors’ concerns about cash flow if Bitcoin prices stay unstable, making sure the company won’t have to sell its BTC holdings too soon. It’s a smart hedge because it shows that you can see the future in a market where crypto prices can change quickly.

The company changed its estimate for the price of Bitcoin at the end of the year from $150,000 to $85,000-$110,000. Because of this, the estimates were cut a lot. Operating income in 2025 could be anywhere from a $7 billion loss to a $9.5 billion gain, and earnings per share could be anywhere from a $17 loss to a $19 gain.

The Bitcoin yield, which is a key measure of how much their holdings are worth, drops to 22–26%. The dollar gains from BTC are now expected to be between $8.4 billion and $12.8 billion, which is half of the previous goal of $20 billion. These changes are realistic, but they also show the risks that come with Bitcoin’s price path.

MicroStrategy bought 130 BTC for $11.7 million, or an average of $89,960 each, even though there were some changes. This brings their total to 650,000 coins, which they bought for $74,436 each, for a total cost of $48.38 billion. They hold about 3.1% of all Bitcoin in circulation, which is a lot. In crypto terms, that’s like a small country’s treasury.

Market watchers reacted by selling MSTR shares, which fell 4.4% in premarket trading, following Bitcoin’s 5% drop. But the reserve shows stability, which could help calm nerves.