Despite increased market volatility, Michael Saylor reaffirms his bet on Bitcoin. His company Strategy has just taken a new step by combining crypto and traditional finance. We provide you with all the details in the paragraphs that follow.
In brief
- Strategy holds 650,000 BTC and creates a reserve of $1.44 billion for its dividends.
- The company is revising its 2025 targets downward despite its reinforced bitcoin accumulation strategy.
A double reserve to stabilize Saylor's bitcoin empire
Faced with the volatility of the crypto market, Strategy is no longer satisfied with a simple accumulation of bitcoin. She also launches a massive cash reserveintended to support dividends on its preferred shares. The total amount is $1.44 billion, funded by a flash sale of MSTR stock in less than nine days.
This financial mattress represents 2.4% of the value of bitcoin holdings from Strategy. It is intended to guarantee the stability of the company in the event of turbulence. The long-term objective? Cover 24 months of dividends.
At the same time, the company acquired an additional 130 BTC for $11.7 million. This brings his holdings to 650,000 bitcoins. Which constitutes 3.1% of the maximum supply of the crypto-asset.
2025 objectives revised downwards despite strong commitment
Not everything is euphoric in the Saylor camp. Despite its record reserves, Strategy appears to be adjusting its bitcoin predictions for 2025. The expected BTC yield is now between 22% and 26%, with a price projection between $85,000 and $110,000 by the end of the year.
The earnings outlook was also reduced by $20 billion to a range of $8.4 billion to $12.8 billion. The same goes for the targeted operating profit which goes from 34 to 7-9.5 billion dollars.
For many crypto analysts, this recalibration in no way cancels Strategy's committed investment strategy. On the other hand, he signals increased caution.
In any case, Strategy seems to be gradually transforming into a hybrid model. This strategic shift could inspire other listed companies exposed to the crypto market. Michael Saylor's bitcoin bet thus remains audacious. However, it is rooted in a more robust financial architecture.
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