Bitcoin giant MicroStrategy has recently found itself at the center of “sell-off FUD” (fear, uncertainty, and doubt). In a significant move to safeguard its financial stability, the company announced the establishment of a substantial $1.44 billion reserve fund. This strategic allocation, primarily intended to cover preferred stock dividends and corporate bond interest, has garnered widespread market attention and prompted analysis from leading on-chain intelligence firm CryptoQuant, which suggests MicroStrategy is proactively preparing for a potential Bitcoin bear market.
In a recent report published on Wednesday, CryptoQuant stated, “MicroStrategy appears to recognize that the probability of a deep or prolonged Bitcoin correction is no longer negligible.” This assessment underscores a perceived shift in the company’s aggressive Bitcoin acquisition strategy.
According to MicroStrategy’s official press release, the colossal reserve fund was largely generated from the sale of common stock last week. The initial plan outlines retaining sufficient cash to cover preferred stock dividends for the upcoming 12 months. The company has also committed to continuously replenishing this reserve, with the ultimate objective of extending coverage to more than 24 months of dividend payments.
CryptoQuant’s analysis indicates that the creation of a two-year U.S. dollar buffer strongly implies MicroStrategy’s leadership anticipates a potential extended period of Bitcoin price stagnation or decline. Furthermore, it suggests a foresight into potentially diminished acceptance from capital markets for future stock issuances.
This “dual reserve model,” where MicroStrategy holds both U.S. dollars and Bitcoin, is seen by CryptoQuant as a mechanism to mitigate the risk of being forced to liquidate its Bitcoin holdings during an economic downturn. However, it also marks a fundamental departure from the company’s renowned “aggressive debt issuance, stock sales, and all-in Bitcoin accumulation” tactic that has defined its strategy since 2020.
Analysts suggest this strategic pivot carries significant implications for the broader Bitcoin market. On one hand, the formidable buying pressure that previously fueled bull runs may diminish. On the other, it substantially reduces the risk of MicroStrategy being compelled to execute a large-scale Bitcoin sell-off due to market panic, thereby contributing to long-term market stability.
The report further elaborated that MicroStrategy’s stance on its Bitcoin portfolio is no longer one of absolute untouchability. Company management now prioritizes a more flexible approach to protect its Bitcoin assets in extreme scenarios. This includes bolstering cash reserves, employing hedging instruments, and selectively liquidating holdings during periods of market weakness.
Data highlights a noticeable deceleration in MicroStrategy’s Bitcoin purchasing activity in 2025. Monthly acquisition volumes are reported to have fallen sharply from 134,000 Bitcoin in November 2024 to a mere 9,100 Bitcoin by November 2025.
CryptoQuant emphasized that MicroStrategy’s strategic shift from “aggressive HODLing” to “liquidity priority” is strikingly synchronous with Bitcoin experiencing its most significant correction of 2025. At present, nearly all major on-chain and technical indicators are flashing red, with the “Bull Score Index” recently plummeting to zero—its most bearish level—for the first time since January 2022.
Julio Moreno, Head of Research at CryptoQuant, offered a projection: should the current bearish trend persist, Bitcoin prices could fluctuate within the $55,000 to $70,000 range next year.
Moreno further clarified that while MicroStrategy’s establishment of a new dollar reserve does indicate an increased probability of Bitcoin sales, such an action would likely be a measure of last resort. He stressed that, in practice, the company would logically prioritize utilizing derivatives for hedging purposes.
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