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Strategy created a 1.44 billion dollar USD reserve
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Move signals preparation for a prolonged bitcoin downturn
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BTC buying slowed sharply in 2025
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Firm now using a dual reserve model of USD and BTC
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Analysts see bitcoin potentially dropping to 55k in a bearish scenario
Strategy Builds Large Cash Buffer as Market Weakens
Michael Saylor’s bitcoin treasury company Strategy has set aside 1.44 billion dollars in cash to cover dividends and debt costs, a move that CryptoQuant says reflects expectations of weaker bitcoin performance ahead. The reserve aims to cover at least 12 months of obligations, with long term plans to extend this to 24 months.
CryptoQuant said the shift indicates Strategy is preparing for sideways or lower BTC prices over an extended period.
A Break From the Aggressive Buying Playbook
Strategy’s cash reserve marks a major change from its multi year approach of issuing stock and convertible debt to buy more bitcoin. Instead, management is adopting a dual reserve model that holds both bitcoin and USD to avoid forced selling during downturns.
CryptoQuant noted that Strategy’s BTC purchases have collapsed from 134,000 BTC in November 2024 to just 9,100 BTC one year later.
Analysts Expect Continued Price Pressure
CryptoQuant’s data shows that every major indicator has flipped bearish, with its Bull Score Index falling to zero for the first time since early 2022. Head of research Julio Moreno said bitcoin could trade between 70,000 and 55,000 dollars next year if the downturn continues.
Investment bank Mizuho maintained its outperform rating on Strategy, saying the reserve reduces liquidity risk and makes forced bitcoin selling less likely.
