Advertise
- Debashree Patra
Debashree Patra
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 04, 2025 07:11 UTC
-
Strategy Builds $1.44B Cash Reserve as It Pauses Aggressive Bitcoin Buying
MSTR builds a $1.44B USD reserve and slows Bitcoin buying as CryptoQuant signals a BTC downtrend, warning of a possible drop into the $70K–$55K range in 2025.
Strategy’s dual-reserve model boosts stability as analysts see 2022-like Bitcoin caution, with weakening ETF demand and rising BTC supply held at a loss.
Michael Saylor’s company, Strategy (MSTR), has shifted its approach in a major way, building a $1.44 billion U.S. dollar reserve and slowing down its Bitcoin accumulation.
According to CryptoQuant, the move shows the company is preparing for weaker or choppy market conditions ahead.
The reserve is designed to cover at least 12 months of dividends and debt payments, and the Strategy plans to stretch this safety buffer to 24 months or more. This marks a clear departure from its earlier model, where the company regularly issued stock and debt to buy large amounts of Bitcoin. The focus has now turned to liquidity, flexibility, and protection.
This shift is already visible. Strategy’s Bitcoin purchases dropped from 134,000 BTC in November 2024 to just 9,100 BTC in November 2025. So far this month, the company has acquired only 135 BTC, confirming that aggressive buying has paused.
Bearish Indicators Signal Potential Bitcoin Downtrend
CryptoQuant says several on-chain indicators are signaling a cooling market. Its Bull Score Index has fallen to zero for the first time since January 2022. Julio Moreno, head of research, says the downtrend began in early November and could push Bitcoin into the $70,000–$55,000 range next year if current weakness continues.
He also notes that Strategy’s large USD reserve slightly increases the possibility of Bitcoin sales, although any sale would only happen after hedging and other protections.
Strategy’s Dual-Reserve Model Strengthens Balance Sheet
Despite the cautious signals, CryptoQuant says Strategy’s new dual-reserve model holding both USD and BTC makes the company more stable. It reduces the risk of forced Bitcoin sales and gives the firm more flexibility in a downturn.
Analysts at Mizuho Securities agree. They maintained their “outperform” rating and $484 price target for MSTR, stating that Strategy can operate for more than three years at current Bitcoin prices without selling any of its holdings.
Bitcoin Market Outlook Shows 2022-Like Caution
Glassnode says the broader Bitcoin environment now looks similar to early 2022. While Bitcoin is trading above its long-term average cost basis, more than 25% of the supply is currently at a loss.
Demand from ETFs, spot markets, and futures has weakened, and options traders are expecting lower volatility, signs of a market preparing for uncertainty rather than a breakout.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
MicroStrategy holds one of the largest corporate Bitcoin reserves, with more than 650,000 BTC accumulated over several years as part of its long-term strategy.
Yes. MicroStrategy has sharply reduced its Bitcoin purchases in 2025 as it focuses on liquidity and stability instead of aggressive accumulation.
No major sales are planned. The new USD reserve actually reduces the risk of forced Bitcoin sales and gives the company flexibility even if Bitcoin drops significantly.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
