From Aggressive Accumulation to Financial Defense: Strategy is Establishing a Bear Market Response Strategy with $1.44 Billion in Cash Reserves
According to the CryptoQuant Weekly Report, Strategy, the world's largest publicly traded Bitcoin holder, is making significant adjustments 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 over $1.44 billion while managing its core Bitcoin reserve valued at approximately $59 billion.
The primary purpose of building a massive cash reserve is to provide assurance for fixed liabilities over the next 12 to 24 months. This fund will be specifically used to pay preferred stock dividends (approximately $700 million annually), convertible bond interest, and to meet short-term liquidity needs during capital market contractions.
The fundamental goal is to ensure that the company does not have to be forced to sell its Bitcoin holdings at low prices to fulfill financial obligations in any market environment, especially during a prolonged bear market or liquidity crisis.
This strategic shift is fully reflected in the significant changes in its BTC purchasing behavior. Data shows that Strategy's monthly Bitcoin purchases have plummeted from a peak of 134,000 coins in 2024 to 9,100 coins in November 2025, with only 130 coins purchased so far this month.
Strategy's near 'halt in purchases' indicates that the company has moved away from its singular offensive strategy of 'issuing stock and using the proceeds to buy Bitcoin' that it employed over the past five years, instead opting for a more defensive posture focused on risk management and financial stability.
Therefore, the impact of this measure on the Bitcoin market is complex and dialectical. From a short-term demand perspective, the purchasing power of one of the market's most significant buyers has significantly weakened, undoubtedly diminishing some of the direct momentum for price increases.
However, from a long-term stability perspective, the massive cash reserves greatly reduce Strategy's tail risk of being 'forced to sell' Bitcoin due to future liquidity crises, eliminating a significant uncertainty for the market.
Overall, although this action may not be directly beneficial for the market, by providing a financial safety net for the largest 'whale,' it offers a more solid and less 'panic sell' risk foundation for the Bitcoin market in the long run.
