How Investors May Respond To Strategy (MSTR) Building a US$1.44 Billion Cash Reserve Beside Its Bitcoin Stack

Simply Wall St
  • In recent days, Strategy Inc. created a US$1.44 billion cash reserve funded by common stock sales, reaffirmed preferred stock dividends for December 31, 2025, and appointed Thomas C. Chow as Executive Vice President & General Counsel and Corporate Secretary.
  • By pairing a large U.S. dollar reserve with ongoing bitcoin accumulation and new legal leadership, Strategy is reshaping how it balances balance-sheet risk, shareholder payouts, and regulatory complexity around its bitcoin-centric business model.
  • With the shares up over the past week, we’ll examine how the US$1.44 billion reserve reshapes Strategy’s investment narrative.

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What Is Strategy's Investment Narrative?

To own Strategy today, you have to believe in its core idea: using a leveraged balance sheet to turn bitcoin exposure into equity returns, while the underlying software business and capital markets access keep the lights on. The new US$1.44 billion dollar reserve goes right to the heart of the near term story, because it buys time on the two biggest pressure points: preferred dividends and debt interest. That reduces the immediate risk of forced bitcoin sales after a steep price drop, even if it came at the cost of fresh dilution and a sharply cut earnings outlook. Chow’s appointment as General Counsel rounds out the picture, signalling a tighter legal and regulatory focus just as index exclusion risk, capital raising uncertainty and bitcoin volatility remain front and center.

But there is one funding risk in particular that shareholders should not ignore. Our comprehensive valuation report raises the possibility that Strategy is priced lower than what may be justified by its financials.

Exploring Other Perspectives

MSTR Community Fair Values as at Dec 2025
Four Simply Wall St Community fair value estimates sit between US$517.21 and US$663, underscoring how far opinions can spread. Set that against dilution, bitcoin volatility and index-removal risk, and you can see why it pays to compare multiple viewpoints.

Explore 4 other fair value estimates on Strategy - why the stock might be worth over 3x more than the current price!

Build Your Own Strategy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we're here to simplify it.

Discover if Strategy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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