Strategy (MSTR) stock has seen volatility, hitting 52-week highs of $457 in July, now corrected by 60% due to Bitcoin decline. The company established a $1.44 billion reserve for dividends and debt coverage, aiming to improve credit health amid risks.

As the largest Bitcoin treasury company worldwide, Strategy holds 650,000 Bitcoins and offers AI-powered analytics software. Despite a 53% stock decline in the last six months, the company reported a 10.9% revenue growth in Q3 2025.

With a $1.44 billion reserve and a focus on dividend payment coverage, Strategy aims to enhance creditworthiness. Holding dollar reserves for 24 months of dividends, the company reported a $68 billion enterprise value and $8.2 billion convertible debt in December 2025.

Reporting a Bitcoin net asset value drop from $71 billion to $59 billion, Strategy anticipates a $9.5 billion operating profit if Bitcoin reaches $110,000 EOY. However, a $7 billion loss is expected if Bitcoin trades at $85,000, signifying crypto asset volatility risks.

Despite analyst consensus of a “Strong Buy” rating for MSTR stock, J.P. Morgan warned of potential exclusion from MSCI indices due to digital asset concentration. With a 60-month beta of 3.40, the company’s focus on dividend payment amid volatility calls for cautious investment.

Based on analysts’ mean price target of $541.62, MSTR stock has an upside potential of 199%, with the most bullish target at $705 suggesting a 289% increase. Amid global monetary support for scarce assets like Bitcoin, the future remains uncertain with ongoing volatility.

Read more at Yahoo Finance: MicroStrategy Is Turning to a U.S. Dollar Reserve Amid Bitcoin Volatility. Should You Buy, Sell, or Hold MSTR Stock Here?