Strategy Inc., the firm once best known as MicroStrategy, said Monday it has raised cash and set aside a $1.44 billion US reserve to cover near-term obligations as Bitcoin tumbles. The move came after recent share sales and follows a brief buy of new coins, according to company statements and market reports.

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Strategy Establishes $1.44B Cash Reserve

According to filings and market reports, the reserve was funded by selling Class A common stock under an at-the-market program and is meant to fund dividends on Strategy’s preferred shares and to help pay interest on its debt for at least 12 months, with a target to extend cover to 24 months or more. The company said it did not liquidate its Bitcoin stash to create the reserve.

The size of the company’s Bitcoin holdings remains unusually large. Based on reports, Strategy now holds about 650,000 BTC after a small recent purchase of roughly 130 BTC that cost about $11.7 million.

That hoard is still worth tens of billions of dollars at current prices, but price swings have put fresh pressure on a business built around holding the asset.

Strategy Inc. announced a $1.44 billion USD reserve to cover at least 12 months of preferred dividends and interest payments, funded through its at-the-market stock sales. The company now holds 650,000 BTC and says the reserve will help manage volatility. https://t.co/i4X1J62Qel

— Wu Blockchain (@WuBlockchain) December 1, 2025

Bitcoin: Market Reaction And Risks

Investors reacted quickly. Strategy’s shares have fallen sharply this year, and analysts say the new cash buffer may calm some fears but won’t erase larger funding and debt timelines that loom over the company.

Strategy announces $1.44B USD Reserve and now hodls 650,000 $BTC. pic.twitter.com/FNFivMNQgh

— Strategy (@Strategy) December 1, 2025

Reports put convertible debt tied to past financing at about $8 billion, and company metrics show the market-to-Bitcoin ratio (mNAV) sliding closer to levels where management has said it might consider selling coins only as a last resort.

Peter Schiff, a well-known Bitcoin critic, took to social media after the announcement and described the reserve as proof the model has failed, calling Michael Saylor a “conman” and saying Saylor is “finished.”

Today is the beginning of the end of $MSTR. Saylor was forced to sell stock not to buy Bitcoin, but to buy U.S. dollars merely to fund MSTR’s interest and dividend obligations. The stock is broken. The business model is a fraud, and @Saylor is the biggest con man on Wall Street.

— Peter Schiff (@PeterSchiff) December 1, 2025

Other market voices urged caution, saying the move changes how investors should value the company — from a pure Bitcoin treasury play to an entity with ongoing cash obligations.

According to reports, Strategy also cut its 2025 profit and Bitcoin-linked yield targets after recent price moves, a sign that management is dealing with a less bullish near-term outlook than it expected earlier this year.

The reserve is meant to prevent forced sales of Bitcoin to meet fixed payouts, but holding cash has its own costs and raises governance questions among long-time backers.

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Schiff’s Issue With Saylor

Schiff’s blistering attack — calling Saylor a fraud and declaring him done — adds a sharp political edge to what had been framed as a financial maneuver.

His claims amplify worries among some investors about Strategy’s governance and capital plan, even as others dismiss the remarks as partisan rhetoric.

Ultimately, whether Schiff’s accusations stick will depend less on social-media barbs than on Strategy’s next moves around debt, disclosure and any future coin sales — actions that will tell investors whether Saylor’s stewardship can weather this storm.

Featured image from Unsplash, chart from TradingView

The US government’s strategic accumulation of Bitcoin (BTC) has resulted in a substantial increase in unrealized gains, with the value of its holdings now estimated at $14.4 billion. This collection, which has 210,392 BTC, makes the United States one of the largest Bitcoin holders worldwide. The head of CryptoQuant, Ki Young Ju, pointed out that several government sections, namely the Department of Justice and the Internal Revenue Service, have not traded any Bitcoin since July 2023, which results in their 2.4-times unrealized profits.

However, Arkham platform analysts have estimated the government’s Bitcoin stash at 215,245 BTC, which is approximately $14.8 billion. This wallet also holds other cryptocurrencies like Ethereum (ETH), USD Coin (USDC), Dai (DAI), and Tether (USDT), highlighting a diversified cryptocurrency portfolio and not only Bitcoin.

Silk Road and Bitfinex Bitcoin Moves Monitored

The public nature of the wallets of some governments with cryptos has raised worries in the crypto community about the market effect of large-scale disposals. All the capitalization of the world crypto market over $2.5 trillion could easily change. This condition has left the market participants in fear, closely watching the government’s movement regarding their cryptocurrency strategy.

In the past, the US has been very active in the transfer and sale of confiscated cryptocurrencies. The significant transactions are the transfer of Bitcoin that was taken from the Silk Road hacker to Coinbase in March 2023 and the sale of 9,861 Bitcoin in April. Additionally, in January, officials outlined plans to dispose of the property that was associated with the Silk Road case, including 2,934 Bitcoin. Among other things, in February, there was the transfer of the 15,085 BTC that had been seized after the Bitfinex exchange hack, thus manifesting the continued involvement of the government in the cryptocurrency sphere.

Investment Trends and Market Characteristics

The broader financial market has seen a huge change in investment behavior as cryptocurrency funds and U.S equity funds have recorded massive in-flows. As per Bank of America strategists, based on EPFR Global data, March 13 week was a historic peak in asset allocations. The US stock funds had an unprecedented inflow of $56.1 billion for one week, which exceeded the record of $53 billion set back in 2021.

Technology funds were particularly favored, drawing an all-time high allocation of $22 billion. This influx is credited with driving an 8% rise in the S&P 500 since the beginning of the year, showcasing the vital role of major tech companies like Nvidia, Meta, and Amazon.

Read Also: MicroStrategy Taps $8B In Trading Volume, Outstrips Amazon

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.