Strategy Allocates $1.44B Buffer to Mitigate Bitcoin Bear Market Risks, Says CryptoQuant

The company known as Strategy, the largest corporate holder of Bitcoin globally, has reserved $1.44 billion as a buffer against potential bear market risks, according to analysts from CryptoQuant. This strategic movement marks a significant change in how the company approaches its market operations, aiming to ensure liquidity even in challenging conditions.

Key Takeaways

Strategy has set aside $1.44 billion to provide a liquidity buffer amidst possible market downturns.
The adjustment reflects a shift from solely acquiring Bitcoin to implementing a dual-reserve treasury model.
Monthly Bitcoin purchases by Strategy have decreased significantly from previous highs.
The company is well-prepared to cover 21 months’ worth of dividends with its new dollar reserve.
Share price declines and market scrutiny are causing increased focus on Strategy’s treasury model.

Strategy's New Approach to Bitcoin Treasury Management

Strategy, recognized as the largest corporate holder of Bitcoin, has strategically set aside a reserve of $1.44 billion as a liquidity buffer to safeguard against a prolonged bear market. Analysts from CryptoQuant interpret this action as a proactive measure to prepare for potential market challenges.

The funds were raised through ongoing at-the-market equity sales, and the reserve is intended to ensure the company can meet dividend payments on preferred stock and fulfill interest obligations for a minimum of 12 months, with aspirations to extend that coverage to 24 months or longer.

In addition, Strategy mentioned the possibility of selling Bitcoin or utilizing Bitcoin derivatives if the market conditions worsen as part of its risk management strategy.

Transition to a Dual-Reserve Treasury System

CryptoQuant highlighted this move as a significant alteration in Strategy’s approach, shifting away from the traditional practice of issuing equity primarily for the purpose of purchasing more Bitcoin. The company is now adapting a dual-reserve treasury framework, which combines long-term Bitcoin exposure with immediate dollar liquidity. This model aims to lower the risk of forced Bitcoin sales during turbulent market conditions.

This adjustment comes at a time when the pace of Bitcoin acquisition by Strategy has dramatically decreased throughout 2025. Monthly purchases have plummeted from 134,000 BTC at the peak in 2024 to just 9,100 BTC in November 2025, with only 135 BTC added so far in the current month, as reported by CryptoQuant.

Bitcoin Holdings

Despite this slowdown, Strategy remains heavily invested in Bitcoin. On November 17, the firm made a substantial purchase of 8,178 BTC for approximately $835.5 million, marking its largest acquisition since July and bringing its total holdings to about 650,000 BTC.

The company is publicly traded under the ticker MSTR, with an estimated market capitalization of around $54 billion and an enterprise value nearing $69 billion.

Market Metrics

Current market net asset value metrics suggest the stock's trading value closely aligns with its Bitcoin holdings. Basic mNAV is currently at 0.892, diluted mNAV is at 0.994, and enterprise-value mNAV stands at 1.136, which reflects the impact of debt and preferred obligations.

Market Reactions and Future Considerations

CEO Phong Le has stated that the only scenario in which the company would contemplate selling Bitcoin is if share prices dip below net asset value and new financing becomes inaccessible. Le emphasized that such sales would be a last resort to safeguard what he calls “Bitcoin yield per share,” and sales would only occur if issuing new equity proved to be more dilutive than reducing their holdings.

Strategy's annual fixed obligations tied to preferred shares are estimated to be between $750 million and $800 million. According to Le, the current dollar reserve covers around 21 months of dividend payments.

Michael Saylor, the Founder and Executive Chairman, characterized this reserve as a crucial phase in Strategy’s development as a Bitcoin-centric treasury firm, allowing it to navigate through market volatility while adhering to its long-term digital asset strategies.

To provide reassurance to investors, the company has recently rolled out a “BTC Credit” dashboard, indicating that it possesses ample dividend coverage even if Bitcoin prices remain stagnant for prolonged periods.

BTC Credit Dashboard

Strategy also mentioned that its debt remains sufficiently managed if Bitcoin prices fall to its average acquisition cost of approximately $74,000 and remains manageable even if prices drop to $25,000.

The implementation of this reserve strategy has sparked diverse reactions in the market. Bitcoin skeptic Peter Schiff suggested that the shift indicates the firm is compelled to sell stocks to acquire cash rather than Bitcoin to meet its responsibilities.

Moreover, Strategy’s share price has dwindled over 60% from its recent peaks, even while Bitcoin has traded between $95,000 and $110,000 during late 2025. This decline prompts further scrutiny of the company's model.

Additionally, Strategy’s approach is being monitored by index providers, with MSCI currently reviewing how entities with substantial digital-asset reserves should be classified in major equity indexes. Any reclassification could obligate benchmark-tracking funds to readjust their holdings, adding yet another layer of volatility to a stock that is already sensitive to Bitcoin price fluctuations.