Strategic Moves to Bolster USD Reserve Fund
In a significant financial maneuver, Strategy has expanded its USD reserve fund by $748 million, bringing the total to an impressive $2.19 billion. This move, announced in December, raises questions about whether it will quell ‘insolvency FUD’ (Fear, Uncertainty, and Doubt) surrounding the company’s Bitcoin-focused operations.
The Role of the USD Reserve Fund
Primarily, this reserve fund will cover mid-term obligations, specifically for 31 months, while also addressing dividend responsibilities tied to preferred stocks—an essential aspect of how Strategy raises capital to acquire Bitcoin. In the longer term, this fund acts as a buffer against financial uncertainty, including the pressing $8 billion debt maturing over the next three years. The first repayments are due in 2028.
Analyst James Van Straten has remarked that boosting USD reserves serves to reduce exclusion risks from the MSCI index, stating, “Just to put the insolvency FUD to bed. Well played.”
Predictions and Market Insights
Polymarket predictions reveal an intriguing outlook. While Strategy faces a 75% chance of being delisted from the MSCI index by Q1 2026, the odds of it liquidating its substantial Bitcoin holdings over the same timeframe are significantly lower—estimated at under 17% in early 2026.
Notably, the USD reserve fund is critical here, offering stability to honor immediate dividend obligations without resorting to Bitcoin sales. This step aligns with recommendations from financial rating agencies like S&P Global.
The Bigger Picture: Credit Ratings and Market Action
In October 2025, S&P Global assigned Strategy a credit rating of ‘B’, citing concerns regarding U.S. dollar liquidity. However, the agency mentioned a potential upgrade should the firm demonstrate improved liquidity, reduced convertible debt, and robust access to capital markets during Bitcoin price downturns. Following this, Strategy raised nearly $4 billion over the past three weeks, enabling it to scale its Bitcoin holdings to 671,268 coins and further bolster its reserve fund.
To fund this endeavor, Strategy sold significant amounts of its MSTR (corporate shares), which has seen considerable price drops, losing 43% of its peak value in 2025. Despite this, the firm looks strategically positioned to navigate future financial challenges.
Bitcoin in Decline: What’s Next?
Both Bitcoin and Strategy’s MSTR shares are experiencing downward trends. Bitcoin has erased its year-to-date gains, now trading at $88,000—a 5% drop. Meanwhile, MSTR’s value plummeted to $164, marking a steep decline from its 2025 high of $457.
Looking Ahead
Strategy’s recent decisions to bolster its USD reserve fund reiterate its commitment to maintaining financial solvency amidst market volatility. While immediate concerns about being delisted from the MSCI index persist, its long-term financial strategy could potentially shield it from forced Bitcoin liquidations and improve its standing with credit agencies.
Related Product
Interested in securing your own financial future? Consider exploring Ledger’s premium cryptocurrency hardware wallets, designed to keep your digital assets safe and easily accessible. Security is paramount in the dynamic world of crypto investments.
