Strategy (formerly MicroStrategy) is the largest corporate Bitcoin holder (650,000 BTC, avg. cost $74,436). It recently raised a $1.44 billion cash reserve via share sales to cover dividends and debt for 12-21 months, protecting its BTC from market swings and avoiding forced sales.
METRICS AND STRATEGIC IMPLICATIONS
• Cash Reserve and Dilution: Funded by dilution, not used for BTC. Critics call it hypocritical to hold large USD reserves while promoting Bitcoin.
• BTC Sale Risk: A "last resort" if mNAV stays below 1.0x and external capital is inaccessible. Current mNAV is ~0.9x.
• Market and Index Pressure: MSTR stock is down 41-45% YTD. Risk of MSCI index removal in Jan 2026 could force $8.8B in passive fund selling.
• Analysts' Views: Benchmark rates it a "Buy" ($705 target if BTC hits $225k by 2026). Critics like Peter Schiff call its debt-and-dilution model a Ponzi scheme.
CONCLUSION
The cash reserve aims to stabilize Strategy's finances and shield its 650,000 BTC. Despite market pressure and index risks, analysts are split on its leveraged Bitcoin strategy's sustainability.
Written by GugaOnChain
