MicroStrategy Pauses Bitcoin Buying, Builds USD Buffer as Bear Signals Rise
MicroStrategy (MSTR) has sharply reduced Bitcoin accumulation during 2025 and shifted its treasury policy toward liquidity and risk management, according to on‑chain analyst CryptoQuant. Monthly BTC purchases dropped from a 2024 peak of ~134,000 BTC to about 9,100 BTC in November 2025 and just 135 BTC so far in December. The company raised over $1.44 billion via common equity to create a US dollar reserve intended to cover preferred‑stock dividends (~$700M annually) and bond interest for 12–24 months. MicroStrategy disclosed it may sell Bitcoin or Bitcoin derivatives as part of risk management and has adopted a dual‑reserve model separating long‑term BTC holdings from short‑term dollar liquidity. The firm currently holds ~650,000 BTC (~$61B) and its average buy price is around $74,436, leaving a paper gain of ~26% at current prices but exposure if a prolonged bear market occurs. MSTR share price has declined substantially in 2025, down about 60% since mid‑July and ~35% year‑to‑date at the time of reporting. Key takeaways for traders: reduced corporate BTC demand, higher likelihood of institutional selling or derivatives use for liquidity, and increased balance‑sheet conservatism amid broad bearish on‑chain and technical indicators.
Bearish
MicroStrategy’s pause in BTC accumulation and the creation of a sizeable USD liquidity buffer signal a shift from accumulation to preservation. The company explicitly said it may sell Bitcoin or derivatives for risk management, increasing the probability of institutional supply entering markets if liquidity is needed. Monthly purchase data (from ~134k BTC in 2024 to ~9.1k BTC in Nov 2025 and only 135 BTC in Dec) shows a dramatic reduction in corporate demand — a key demand-side driver that had supported price. Combined with broad on‑chain and technical indicators pointing to a bearish phase and MSTR equity weakness, short-term pressure on BTC price is likely as traders price in potential selling and lower corporate bids. In the medium term, if MicroStrategy sticks to the dual‑reserve model without actual sales, impact may be muted; however, the option to liquidate derivatives or spot BTC remains a tail risk that can worsen declines during stress. Historical parallels: past periods when large corporate holders signaled liquidity needs (or sold) — for example sales or balance‑sheet hedges in earlier downturns — correlated with amplified volatility and price drawdowns. For traders: consider lower corporate bid support, heightened volatility, and the potential for sudden supply events; risk management (position sizing, stop losses, hedges) is advised both short‑term and through a potential extended bear market.