From Aggressive Accumulation to Financial Defense: Strategy Is Establishing a $1.44 Billion Cash Reserve as a Bear Market Response

According to the CryptoQuant weekly report, the world’s largest publicly listed Bitcoin holding company, Strategy, is making a significant adjustment to its financial strategy, aiming to build a brand-new “dual reserve” operating model.

The core of this model is to establish an independent cash reserve of more than $1.44 billion, while managing its core Bitcoin reserve worth about $59 billion.

The main purpose of building this massive cash reserve is to secure fixed liabilities for the next 12 to 24 months. These funds will be specifically used to pay preferred stock dividends (about $700 million per year), convertible bond interest, and to meet short-term liquidity needs during capital market tightening.

The fundamental goal is to ensure that the company will not be forced to sell its Bitcoin holdings at low prices to fulfill financial obligations in any market environment—especially during prolonged bear markets or liquidity crises.

This strategic shift is fully reflected in the company’s significantly changed BTC purchasing behavior. Data shows that Strategy’s monthly Bitcoin purchases have plunged from a 2024 peak of 134,000 coins to just 9,100 in November 2025, and only 130 so far this month.

This near “halt” in purchases signals the company’s departure from the aggressive “issue shares, use proceeds to buy Bitcoin” strategy of the past five years, turning instead to a much more defensive posture focused on risk management and financial stability.

Therefore, the impact of this move on the Bitcoin market is complex and nuanced. In the short term, the purchasing power of one of the market's most important buyers has weakened significantly, undoubtedly reducing some of the direct upward momentum on price.

However, from a long-term stability perspective, the massive cash reserve greatly reduces the tail risk that Strategy will be “forced to sell” Bitcoin due to a future liquidity crisis, eliminating a major uncertainty for the market.

Overall, while this move may not be a direct positive for the market in the short term, by building a financial safety net for the largest “whale,” it provides a more solid and less “panic sell” risk foundation for the Bitcoin market in the long run.

#Strategy #Bitcoin