CryptoQuant: Strategy Changes Course Amid Threat of Market Downturn
Date: 2025-12-04 Author: Oliver Abernathy Categories: BUSINESS
Strategy has created a $1.44 billion fiat currency cushion intended to ensure timely dividend payments and debt servicing. According to CryptoQuant analysts, this move marks a gradual shift in the company's capital management approach amid growing uncertainty in the crypto market. The reserve was created as a result of the IPO program and already covers at least one year of financial obligations. Management intends to increase this reserve to a level that will provide up to two years of stable payments.
Experts note that combining Bitcoin investments with the simultaneous accumulation of dollars reduces the risks associated with potential liquidity issues. However, this strategy differs significantly from the one Strategy has pursued since 2020, when the priority was to aggressively increase its Bitcoin position by constantly raising new capital. Now, the company is emphasizing greater flexibility and protection from prolonged market declines.
Strategy's decline in Bitcoin market activity is already becoming noticeable. While the company acquired approximately 134,000 BTC in November 2024, purchases fell to 9,100 BTC in November 2025. In December, the reserve replenishment was even more modest—only 135 BTC. Analysts believe that weakening demand from such a large player could deprive the market of one of the significant factors that supported growth during previous bullish periods.
At the same time, the presence of significant dollar reserves reduces the likelihood of forced Bitcoin sales in the event of a deterioration in market conditions. Moreover, CryptoQuant's report emphasizes that Strategy no longer rules out the use of hedging instruments and partial monetization of its crypto assets, including derivatives transactions, if market pressure intensifies. In fact, the company no longer views its Bitcoin holdings as completely secure under any circumstances.
CryptoQuant CEO Ki Young Ju notes that, if Strategy maintains its current Bitcoin holdings, estimated at approximately 650,000 BTC, a repeat of the 2022 crash scenario with a 65% decline is unlikely. According to him, the current decline from the all-time high is approximately 25%, and even if a full-fledged bear market were to form, the movement would likely be smoother and resemble a prolonged sideways movement.
The expert also emphasized that Bitcoin has significantly more liquidity channels today than it did several years ago, and institutional investor interest remains strong. Therefore, in his opinion, long-term holders should not panic, despite Strategy's cautious steps and increased protective measures within the company.
