Michael Saylor, Chairman of Strategy, baffled investors and Bitcoiners on the weekend by saying his company plans to add “green dots” to the company’s portfolio.

He usually added orange dots, which indicate bitcoin purchases. The online community was confused, and speculations ranged from selling bitcoin to stock buybacks.

Now, the company has revealed that it has made a major financial move by creating a $1.44 billion cash reserve while confirming that it now holds 650,000 bitcoin. This announcement, shared on the company’s website, marks a big shift in how it plans to manage risk.

Strategy says this new cash reserve will be used to pay dividends on preferred stock and cover interest on its debt. The reserve was built using money raised from selling new shares of its Class A common stock.

For years, Strategy focused almost entirely on converting as much cash as possible into bitcoin. That approach helped it become the world’s largest corporate bitcoin holder. But with bitcoin’s price falling in recent weeks, and Strategy’s own stock dropping more than 60% from its high, the company is adding a layer of financial protection.

Michael Saylor explained the change by saying:

Strategy plans to keep enough cash to cover at least 12 months of dividends, eventually building the reserve to cover 24 months or more. CEO Phong Le said the reserve already covers “21 months of dividends.” The company noted that the reserve represents roughly 2–3% of Strategy’s total value.

Along with the reserve, Strategy announced that it bought 130 more bitcoin, worth about $11.7 million, at an average price of $89,960 each. Though this is a small purchase compared to its past buys, it increases the firm’s holdings to 650,000 BTC, or 3.1% of all bitcoin that will ever exist.

The company had paused purchases the previous week, worrying some investors. Despite a recent decline in its stock price, Strategy was still able to raise enough money to build the cash reserve.

Saylor reassured investors about the company’s long-term focus, saying, “Our conviction in Bitcoin is unwavering, and our mission remains unchanged: to build the world’s first digital monetary institution on a foundation of sound money and financial innovation.”

Strategy also updated its financial outlook for 2025. Earlier this year, the company assumed bitcoin would end 2025 at around $150,000. But after bitcoin fell from above $112,000 in late October to around $80,000 in late November, Strategy lowered its expectations.

Now the company predicts bitcoin will end 2025 somewhere between $85,000 and $110,000. Based on that range, Strategy expects:

Because new accounting rules require Strategy to record bitcoin gains and losses each quarter, the company says its results are now “extremely sensitive” to bitcoin’s price.

Strategy also lowered its major Bitcoin-related targets for 2025. It now expects:

These numbers are much lower than earlier projections, including a previous target of $20 billion in BTC gains.