Strategy ups cash reserves to $2.19b, pauses BTC buying

On December 1, Strategy, the company previously known as MicroStrategy, revealed its plans to establish a US dollar reserve. Initially set at $1.44 billion, this reserve aims to support the payment of dividends and interest on outstanding debts. As of December 21, regulatory filings indicate that the cash reserve has risen to $2.19 billion.

Strategy boosts cash reserves to $2.19 billion after initial $1.44 billion

The increase in cash reserves demonstrates a significant financial maneuver for Strategy. The firm has taken a break from its long-running Bitcoin accumulation strategy, which has been a hallmark of its operations for years. The decision to pause Bitcoin purchasing comes as shares hover just above the critical support level of $155.

Firm pauses Bitcoin acquisitions, maintaining existing holdings at 671,268 BTC

During the week ending December 21, Strategy reported no new Bitcoin acquisitions, keeping its total holdings steady at 671,268 BTC, worth approximately $64 billion at current market values. Instead of expanding its crypto portfolio, the company chose to issue and sell 4.54 million Class A common shares from December 15 to December 21, garnering $747.8 million in net proceeds.

Company shares experience downward pressure amidst changing market conditions

Shares of Strategy, traded under the ticker MSTR, faced a 0.3% decline at market close on Monday. The stock has dramatically dropped about 64% since its peak in July, when it reached nearly $460. The downward trend has persisted through November and December, with any attempts at price recovery being met with selling pressure. Currently, the stock trades around $164.32, facing technical indicators that suggest a bearish outlook.

Shift towards cash reserves indicates a new investment strategy for the firm

The decision to bolster cash reserves rather than acquire more Bitcoin signals a strategic pause following months of heavy buying. Since mid-2024, Strategy’s Bitcoin holdings surged from around 400,000 BTC to over 671,000 BTC by the end of 2025. This shift in focus towards maintaining liquidity could offer the firm greater flexibility in navigating future market conditions.

Despite this pause, Strategy still has over $41 billion in capacity available for both common and preferred stock issuance programs. Cumulatively, the firm has invested $50.33 billion in Bitcoin, yielding an average purchase price of $74,972 per coin. With Bitcoin's current price around $89,000, this reflects an unrealized gain of approximately 19%.