Michael Saylor’s Strategy Forms $1.44B USD Reserve and Updates FY2025 Bitcoin-Linked Guidance

Core Viewpoint - The company has established a U.S. dollar reserve of $1.44 billion, positioning itself as the world's largest "Bitcoin Treasury Company" to enhance liquidity amid volatile digital-asset markets [1][2]. Group 1: Financial Strategy and Reserves - The U.S. dollar reserve will support dividend payments on preferred stock and interest obligations, aiming to maintain coverage for at least 12 months, with a goal to extend it to 24 months or more [2]. - The reserve will be managed at the company's discretion and may be adjusted based on market conditions and capital requirements [2]. - The company currently holds 650,000 Bitcoin, which is approximately 3.1% of the total eventual supply, and the USD Reserve covers 21 months of dividends [3]. Group 2: Earnings Guidance and Projections - The company has revised its FY2025 earnings guidance due to recent declines in Bitcoin's trading price, projecting operating income to range from a loss of $7.0 billion to a profit of $9.5 billion, and net income from a loss of $5.5 billion to a gain of $6.3 billion if Bitcoin ends 2025 between $85,000 and $110,000 [4]. - Diluted earnings per share are expected to range from a loss of $17.0 to earnings of $19.0 per share, contingent on successful capital raises to achieve the 2025 Bitcoin Yield Target [5]. Group 3: Bitcoin KPI Targets - The company anticipates its Bitcoin yield for 2025 to fall between 22.0% and 26.0%, with Bitcoin dollar gains projected between $8.4 billion and $12.8 billion [6]. - These targets will be pursued through preferred stock offerings, disciplined equity issuance, and continued accumulation of Bitcoin [6]. Group 4: Market Reaction - The announcement has elicited criticism from market observers, including Peter Schiff, who suggested that the establishment of a USD Reserve signals a negative outlook for the company [7].