Michael Saylor's Strategy announces $1.44B dollar reserve as stock slumps

Core Viewpoint - MicroStrategy has established a $1.44 billion USD reserve to support dividend payments and service debt obligations, marking a strategic shift in its risk management approach [1][5]. Group 1: Financial Strategy - The newly created "USD Reserve" aims to maintain a balance sufficient to cover at least 12 months of dividends, with plans to extend this coverage to 24 months or more [2]. - The reserve was financed through proceeds from an at-the-market stock offering, indicating a structural change in how the company manages its financial resources [5]. - The company's modified NAV (mNAV) has fallen to 1, meaning its equity value is now trading at the value of its underlying Bitcoin holdings without any market premium [6]. Group 2: Bitcoin Holdings and Market Position - MicroStrategy currently holds 650,000 Bitcoin, which represents approximately 3.1% of the total supply that will ever exist [3][6]. - The establishment of the USD Reserve is intended to insulate the company from short-term Bitcoin volatility while allowing it to continue accumulating Bitcoin [6]. - This move aligns with the long-term vision of becoming the world's leading issuer of "Digital Credit," focusing on stable cash flows rather than solely on Bitcoin appreciation [7]. Group 3: Market Performance - MicroStrategy's stock has declined over 60% from its peak, trading near $177, influenced by weaker Bitcoin prices and changing market sentiment [4]. - The company has revised its fiscal year 2025 guidance, adjusting assumptions for Bitcoin's year-end price due to recent market declines [8].