Published by Global Banking and Finance Review
Posted on December 1, 2025
2 min readLast updated: January 20, 2026
Strategy cuts 2025 earnings forecast due to Bitcoin slump, impacting shares. A $1.44 billion reserve is set up to support dividends.
By Pritam Biswas and Hannah Lang
Dec 1 (Reuters) - Strategy slashed its earnings forecast for 2025 on Monday, citing a weak run in bitcoin, the world's largest cryptocurrency, and announced plans to create a reserve to support dividend payments.
Shares of the largest corporate holder of bitcoin slumped about 11% in afternoon trade.
Bitcoin dropped below $90,000 on Monday as a selloff deepened. The cryptocurrency had shed more than $18,000 in November, marking its steepest monthly fall since mid-2021 amid renewed risk aversion.
"Bitcoin's ongoing slump has been a disaster for Strategy, as the stock hits fresh one-year lows," said Chris Beauchamp, chief market analyst at IG Group.
"Many had hoped that the lows last week in bitcoin would mark a recovery for the stock, but while the cryptocurrency is still above the November low, the selling appears to be intensifying as the afternoon goes on."
Shares of firms holding bitcoin and other tokens on their balance sheets have been under pressure following the latest volatility in the crypto market.
Strategy said it now expected between a profit of $6.3 billion and a loss of $5.5 billion for the full year, compared to its previous forecast of a net profit of $24 billion.
The prior estimate, published on October 30, assumed a bitcoin price of $150,000 as of December 31, the company said.
Separately, Strategy said it had set up a $1.44 billion reserve to fund dividends on preferred stock and interest on outstanding debt.
The reserve, which is set to ultimately cover for two years, will position the company better to "navigate short-term market volatility", Michael Saylor, founder and executive chairman, said in a statement.
Strategy said it held 650,000 bitcoins, equal to about 3.1% of the total 21 million that will ever exist.
(Reporting by Pritam Biswas in Bengaluru; Editing by Anil D'Silva and Sriraj Kalluvila)
Bitcoin is a decentralized digital currency that enables peer-to-peer transactions over the internet without the need for a central authority or intermediary.
A cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on a technology called blockchain.
A dividend is a portion of a company's earnings distributed to shareholders, typically in cash or additional shares, as a reward for their investment.
Market volatility refers to the degree of variation in the price of a financial asset over time, indicating the level of risk and uncertainty in the market.
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