MicroStrategy "Hoard cash, not coins": Cash reserves increase to $2.19 billion, Bitcoin purchases paused.

According to the documents submitted by the company to the U.S. Securities and Exchange Commission (SEC), during the week ending December 21, Strategy, led by Michael Saylor, sold approximately 4.54 million shares of Class A common stock, raising a net proceeds of $747.8 million.

This fund is entirely used to enrich the company's dollar reserves, bringing its total cash reserves to $2.19 billion.

01 Strategic Shift

Strategy's recent operations have shown a clear pattern shift. In the past two weeks, the company has been unusually aggressive in its purchases of Bitcoin.

In the week ending December 14, the company purchased 10,645 bitcoins for approximately $980.3 million, at an average price of $92,098 per bitcoin. The previous week, it also bought 10,624 bitcoins.

However, in the past week, the bitcoin holdings of Strategy remained stable at 671,268 coins, with no increase. This is the company's first absence in “Bitcoin Regular Investment” recently.

Documents show that the total purchase cost of 671,268 bitcoins is approximately $50.33 billion, with an average cost of $74,972 per bitcoin (including fees).

02 Reserve Intent

This move is not without warning. As early as December 1, the company disclosed the establishment of a $1.44 billion dedicated USD reserve.

The clear purpose of the reserve is to pay dividends on preferred shares, repay interest on debt, and manage short-term market fluctuations. This time, the reserve has been significantly increased to $2.19 billion, which significantly enhances the company's financial buffer capability.

Analysts at investment bank TD Cowen believe that this move is to enable the company to cope with a potential “prolonged cryptocurrency winter”.

Analysts pointed out in the report that this cash reserve is sufficient to cover the company's interest and dividend obligations for approximately 32 months, which should help it continue operations under challenging market conditions.

03 Market Background

The strategy adjustment of Strategy occurs at a critical market node. Since mid-October, the price of Bitcoin has fallen by approximately 30%.

The stock price (MSTR) has been more severely affected, dropping by 50% during the same period, with a decline of over 43% for the year. This difference in decline highlights the company's attribute as a leveraged investment vehicle for Bitcoin.

Recently, the index provider MSCI is considering a rule change that could reshape the positioning of cryptocurrency companies in global stock markets. The proposal indicates that if a company has more than 50% of its assets in digital assets, it may be removed from its main index.

MSCI believes that these companies are more akin to investment funds rather than operating entities. Strategy, as the largest corporate Bitcoin holder, is at the center of this debate. The final decision is expected to be made on January 15, 2026.

04 Industry Perspective and Future Trends

Although Strategy has temporarily halted its purchasing activities, its long-term strategic core has not changed. The company repeatedly emphasizes that Bitcoin remains its primary reserve asset and financing engine, while the dollar reserves are intended to stabilize dividends and operational liquidity.

TD Cowen's analysts maintain a “buy” rating on Strategy and set a target stock price of $500 for the next 12 months. Based on a stock price of about $165 at the time of the report's release, this target price implies an upside potential of over 200%.

The company predicts that by the end of the 2027 fiscal year, Strategy may hold approximately 835,000 bitcoins.

In addition to traditional cryptocurrency trading, leading trading platforms like Gate also offer users diverse ways to participate in such market themes.

Investors can pay attention to structured products linked to the performance of Strategy stocks or conveniently trade Bitcoin spot and derivatives through the platform to respond to market fluctuations and opportunities.

05 Strategy Impact

The balance sheet of Strategy is becoming increasingly complex. On one hand, it holds a massive Bitcoin asset worth tens of billions of dollars, accounting for approximately 3.2% of the total Bitcoin supply. On the other hand, its cash reserves have now swelled to $2.19 billion.

This “hybrid cash and Bitcoin” treasury model signifies the company's evolution from a singularly aggressive Bitcoin bull to an entity that emphasizes risk management and financial flexibility.

Saylor himself describes his strategy as “green dots bring orange dots,” implying that raising cash (green dots) is ultimately to buy more Bitcoin (orange dots) at the right time.

As 2025 approaches its end, every move made by institutional investors is being magnified and interpreted by the market. On global trading platforms like Gate, the signals of institutional behavior intertwine with the sentiments of retail investors, together shaping the narrative of the next cycle.

Whether for defense or to build up for an offensive, the Strategy tactical pause in December will leave a noteworthy mark in the history of corporate adoption of cryptocurrency.