Michael Saylor’s $1.44B Bitcoin Reserve Strategy Reshapes FY2025 Corporate Guidance

Another quarter, another billion-dollar bet on digital gold. Michael Saylor's corporate playbook just added a fresh chapter—and it reads like a manifesto for the Bitcoin-maximalist boardroom.

The Treasury Tactic: From Cash to Crypto

Forget boring old bonds or stagnant cash reserves. Saylor's latest move converts a staggering $1.44 billion of corporate dry powder into a Bitcoin-backed war chest. It's a direct challenge to conventional corporate finance, treating the balance sheet not just as a ledger, but as a strategic asset allocation platform. The message to CFOs everywhere? Your idle cash is a depreciating liability.

Guidance, Reforged in the Fires of Volatility

The real headline isn't the reserve size—it's the updated FY2025 guidance, now explicitly linked to Bitcoin's performance. This isn't hedging; it's a full-throated alignment of corporate destiny with crypto market cycles. They're not just holding an asset; they're letting it steer the ship. A bold move that would give traditional risk managers heart palpitations—or, in Wall Street parlance, 'innovative exposure management.'

The New Corporate Playbook

Saylor isn't just buying Bitcoin; he's rewriting the rules. This strategy transforms volatility from a risk to be mitigated into a core driver of forward-looking statements. It begs the question for every public company: if your treasury isn't working for you in the digital age, what exactly is it doing?

The move cements a new era of corporate finance—one where the quarterly earnings call might just start with a check on the blockchain. Love it or hate it, the playbook is published. The only thing left to see is who has the conviction to copy it.

Revised 2025 Outlook Reflects Bitcoin Price Volatility

Strategy has also updated the assumptions behind its FY2025 earnings guidance following recent declines in Bitcoin’s trading price.

If bitcoin ends 2025 within the range of $85,000 to $110,000, Strategy said it expects operating income to fall anywhere between a loss of $7.0 billion and a profit of $9.5 billion, while net income could range from a loss of $5.5 billion to a gain of $6.3 billion.

Diluted earnings per share are projected to come in between a loss of $17.0 per share and earnings of $19.0 per share. These projections rely on the successful completion of planned capital raises that WOULD allow Strategy to achieve its 2025 Bitcoin Yield Target and deploy the resulting proceeds into additional Bitcoin purchases.

Updated Bitcoin KPI Targets for 2025

Under the same Bitcoin price assumptions and incorporating anticipated common stock issuance to maintain the USD Reserve, Strategy said it now expects its Bitcoin yield for the year to fall between 22.0% and 26.0%. The company also forecasts Bitcoin dollar gains of between $8.4 billion and $12.8 billion.

Strategy said it expects to reach these targets through a combination of preferred stock offerings, disciplined equity issuance, and continued accumulation of bitcoin.

Market Reaction and Peter Schiff’s Criticism

The announcement drew swift and vocal commentary from market observers, including well-known Bitcoin critic Peter Schiff, who posted on X that Strategy’s establishment of a USD Reserve indicates “the beginning of the end of $MSTR.”

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.

Schiff argued that Strategy was “forced to sell stock not to buy Bitcoin, but to buy U.S. dollars” in order to cover interest and dividend obligations, calling the business model “broken” and alleging that the company was relying on equity sales to sustain its financial commitments.