Strategy Inc, formerly MicroStrategy, has paused its Bitcoin purchases for the week, according to a recent SEC filing. Instead of buying BTC, the company raised approximately $748 million through sales of common stock and added these proceeds to its U.S. dollar cash reserves, bringing the total to $2.19 billion.
Strategy holds 671,268 BTC, acquired for a total of ~$50.33 billion at an average price of $74,972 per BTC. At Bitcoin prices around $89,000–$90,000, this represents unrealized gains of about 19%.
The USD reserve, established earlier in December at $1.44 billion, supports payments for preferred stock dividends and debt interest. The new total ~$2.2 billion covers over 30 months of these obligations, enhancing liquidity amid market volatility.
This follows aggressive buying earlier in the month including ~$2 billion in BTC over prior weeks. Analysts view the pause as tactical—for balance sheet strengthening—rather than a shift away from its long-term Bitcoin treasury strategy.
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This move addresses concerns about potential forced BTC sales in a downturn while preserving flexibility for future acquisitions. Strategy remains the largest corporate Bitcoin holder.
Strategy Inc. halting Bitcoin buys for the week while raising ~$748M to boost USD reserves to $2.19B, is widely viewed as a tactical and prudent move rather than a fundamental shift away from its long-term Bitcoin treasury strategy.
The expanded cash reserve covers over 30 months of preferred stock dividends and debt interest obligations. This directly addresses investor concerns about potential forced Bitcoin sales during prolonged downturns or volatility spikes.
In a year where Bitcoin has dropped 30% from its October 2025 peak ($125,000), building a USD buffer reduces balance sheet risk without liquidating BTC holdings still 671,268 BTC, valued at ~$60B with unrealized gains. Michael Saylor and the company have repeatedly affirmed Bitcoin as a superior long-term store of value.
The pause follows aggressive purchases earlier in December ~10,645 BTC at ~$92,000 average, suggesting timing discipline rather than doubt. Analysts see this as preserving “dry powder” for opportunistic buys at lower prices, maintaining flexibility in a volatile market.
Removes a consistent source of buy-side pressure, contributing to BTC’s consolidation around $88K–$90K and reduced upward momentum. Historically, Strategy’s purchases provided a psychological floor and sentiment boost; their absence can amplify perceptions of weakening institutional demand.
BTC down ~22% in Q4 2025— one of its weakest quarters, with high options expiry looming (Dec 26) adding choppiness. However, no widespread panic—many view the pause as allowing “organic” price discovery. Stock dipped amid the news but showed modest premarket gains (~3%) alongside BTC’s weekend bounce.
Longer-term pressures persist: MSTR down >40% YTD, facing risks like potential MSCI index exclusion could trigger billions in forced selling and ongoing share dilution from ATM offerings. Lower perceived risk of BTC fire sales could support valuation; some analyst targets remain bullish like Citigroup Buy rating despite PT cut.
Shifting from relentless accumulation to balanced liquidity management. Could influence other Bitcoin treasury firms like those facing similar volatility tests in 2025’s downturn. Neutral-to-positive for institutional adoption long-term, as it demonstrates risk-aware approaches rather than reckless leverage.
This appears to be a defensive, maturity-driven pivot amid BTC’s correction, strengthening Strategy’s position for future cycles without abandoning its Bitcoin-maximalist thesis. Short-term traders may see caution, but long-term holders interpret it as smart capital preservation. Monitor for resumed purchases or further filings for confirmation.