MicroStrategy Is Turning to a U.S. Dollar Reserve Amid Bitcoin Volatility. Should You Buy, Sell, or Hold MSTR Stock Here?

Core Insights - Strategy (MSTR) stock has experienced significant volatility in 2025, with a 60% correction from its 52-week high of $457, primarily due to declines in Bitcoin prices [1][4] - The company has established $1.44 billion in dollar reserves to support dividend payments and debt servicing, aiming for a coverage of 24 months of dividends [2][5] - As of December 2025, Strategy holds 650,000 Bitcoin, making it the largest Bitcoin treasury company globally, and reported a revenue growth of 10.9% in its AI-powered analytics software business [3] Financial Position - Strategy's enterprise value is reported at $68 billion, with convertible debt of $8.2 billion, resulting in a low loan-to-value ratio of 11%, indicating financial flexibility [6] - The company's Bitcoin net asset value (NAV) has decreased from $71 billion to $59 billion, highlighting the risks associated with high volatility in crypto assets [7] Profitability Outlook - The company anticipates an operating profit of $9.5 billion in 2025 if Bitcoin reaches $110,000 by year-end, but expects a loss of $7 billion if Bitcoin trades at $85,000 [8]