With a crypto slide underway, Strategy built a $1.44 billion cash war-chest and signaled it may
sell Bitcoin if market value slips, a move that could shape Bitcoin’s next big
leg down or spark a broader sell-off.
Bitcoin’s recent tumble has done more than rattle HODlers. The drop
from October highs around $126,000 to lows
near $85,000 pushed the price of BTC down nearly 30 percent.
For MicroStrategy, now rebranded as Strategy Inc., this isn’t a mere paper
loss. The firm holds roughly 650,000
BTC, about 3.1 percent of total eventual supply. Under accounting rules it
adopted, changes in Bitcoin’s market value hit its earnings directly.
Posted the $BTC playbook. Invited the world. pic.twitter.com/GoU5ScF9WH
— Strategy (@Strategy) June 22, 2025
That kind of exposure turns a crypto crash into a corporate stress
test.
The New Fire-Extinguisher: A $1.44 B Cash Reserve
On December 1, 2025 Strategy announced it has parked
$1.44 billion in USD to fund dividend and interest payments. The money came
from newly issued Class A shares.
Phong Le, CEO of @Strategy, spoke with @BloombergTV today on our $1.44B USD Reserve, continuity of dividends, mNAV valuation, and recent market FUD, including index inclusion. pic.twitter.com/iEAsZN4kDG
— Strategy (@Strategy) December 2, 2025
The idea is to cover at least 12 months of obligations, but the company said
the reserve could eventually support up to 24 months.
“Establishing a USD Reserve to complement our BTC Reserve marks the next step
in our evolution, and we believe it will better position us to navigate
short-term market volatility while delivering on our vision of being the
world’s leading issuer of Digital Credit,” said Saylor.
i.e. This is a buffer against short-term volatility as Bitcoin bounces
around.
At first glance this sounds like prudent risk management. But digging
deeper it reveals. The cash reserve may be a sign Strategy is bracing for more
pain, either from a deeper BTC slump or forced monetization of coins.
Bitcoin Sales No Longer Off the Table
Michael Saylor has long treated selling Bitcoin as heresy, but
Strategy’s tone has shifted. In recent commentary highlighted across financial
media, CEO Phong Le acknowledged that parting with some of the company’s
Bitcoin is no longer unthinkable.
Phong Le, President & CEO at Strategy, claimed Bitcoin sales would be “the last resort” (LinkedIn).
In coverage of Strategy’s updated guidance, Le explained that although
selling BTC is not the plan, there are scenarios where it could happen,
particularly if the firm needed cash and had no other practical way to raise
it. He described it as the “last
resort,” not a strategic pivot.
The statement doesn’t mean Strategy is preparing to dump coins onto the
market. But it does mark the first time the leadership has openly accepted that
selling is possible. With preferred dividend payments approaching at year-end
and the company’s finances under closer scrutiny amid Bitcoin’s slide, some
traders wondered whether Strategy might be forced into action.
Based on its latest disclosures, that moment doesn’t appear imminent.
The company has built a sizeable USD reserve to handle obligations , signaling
that while selling Bitcoin is technically on the table, it is not expected to
be part of Strategy’s immediate playbook.
However, MicroStrategy has now acknowledged a scenario many once viewed as impossible: the company could, under pressure, sell some of its Bitcoin. In remarks highlighted by recent reporting, Le laid out the specific chain of events that would force the move.
For a sale to happen, MicroStrategy’s stock would first need to trade below 1x mNAV, meaning the company’s market value drops under the value of its Bitcoin holdings. On top of that, the firm would need to be shut out of raising fresh capital through equity or debt. In other words, if markets refused to fund the company and its share price slipped beneath its Bitcoin valuation, a sale would shift from unthinkable to unavoidable.
Why Traders Should Track Strategy
Strategy isn’t a fringe player. It is widely viewed as the largest
corporate holder of Bitcoin.
If Saylor & co decide to dump a chunk of BTC, that could trigger
panic among crypto-holders who look to institutional moves for cues. The
resulting cascade could amplify downward pressure on price beyond what macro
factors alone would do.
Alternatively, if Strategy uses the cash reserve instead of selling, it
might signal to investors that the downturn is survivable. That could stabilize
sentiment, maybe even set the stage for a rebound if BTC slips enough to
attract bargain-hunters.
In either scenario, Strategy has become a market barometer. Traders
ignoring its moves are gambling without checking the scoreboard.
What It All Says: Bitcoin Is Not an Island
The days when Bitcoin traded mainly on retail emotion may be over. As
firms like Strategy pile hundreds of thousands of BTC onto their books, the
crypto market becomes tightly interwoven with traditional corporate finance.
When BTC crashes, it is not just individual wallets that bleed.
Corporate treasuries, dividend commitments, equity dilution, debt servicing,
all those elements feed into whether BTC gets dumped or held.
Strategy’s recent reserve build and warning about potential sales show
that even its CEO is hedging. That hedging could morph into selling, and if it
does, it could accelerate the crash, or if it doesn’t, it could mark a shift
toward treating Bitcoin as a long-term balance-sheet asset rather than a wild
speculative ride.
For traders and investors that means one thing: watch Strategy like you
watch a central bank. Its moves may tell you more about Bitcoin’s direction
than any chart or tweet.
With a crypto slide underway, Strategy built a $1.44 billion cash war-chest and signaled it may
sell Bitcoin if market value slips, a move that could shape Bitcoin’s next big
leg down or spark a broader sell-off.
Bitcoin’s recent tumble has done more than rattle HODlers. The drop
from October highs around $126,000 to lows
near $85,000 pushed the price of BTC down nearly 30 percent.
For MicroStrategy, now rebranded as Strategy Inc., this isn’t a mere paper
loss. The firm holds roughly 650,000
BTC, about 3.1 percent of total eventual supply. Under accounting rules it
adopted, changes in Bitcoin’s market value hit its earnings directly.
Posted the $BTC playbook. Invited the world. pic.twitter.com/GoU5ScF9WH
— Strategy (@Strategy) June 22, 2025
That kind of exposure turns a crypto crash into a corporate stress
test.
The New Fire-Extinguisher: A $1.44 B Cash Reserve
On December 1, 2025 Strategy announced it has parked
$1.44 billion in USD to fund dividend and interest payments. The money came
from newly issued Class A shares.
Phong Le, CEO of @Strategy, spoke with @BloombergTV today on our $1.44B USD Reserve, continuity of dividends, mNAV valuation, and recent market FUD, including index inclusion. pic.twitter.com/iEAsZN4kDG
— Strategy (@Strategy) December 2, 2025
The idea is to cover at least 12 months of obligations, but the company said
the reserve could eventually support up to 24 months.
“Establishing a USD Reserve to complement our BTC Reserve marks the next step
in our evolution, and we believe it will better position us to navigate
short-term market volatility while delivering on our vision of being the
world’s leading issuer of Digital Credit,” said Saylor.
i.e. This is a buffer against short-term volatility as Bitcoin bounces
around.
At first glance this sounds like prudent risk management. But digging
deeper it reveals. The cash reserve may be a sign Strategy is bracing for more
pain, either from a deeper BTC slump or forced monetization of coins.
Bitcoin Sales No Longer Off the Table
Michael Saylor has long treated selling Bitcoin as heresy, but
Strategy’s tone has shifted. In recent commentary highlighted across financial
media, CEO Phong Le acknowledged that parting with some of the company’s
Bitcoin is no longer unthinkable.
Phong Le, President & CEO at Strategy, claimed Bitcoin sales would be “the last resort” (LinkedIn).
In coverage of Strategy’s updated guidance, Le explained that although
selling BTC is not the plan, there are scenarios where it could happen,
particularly if the firm needed cash and had no other practical way to raise
it. He described it as the “last
resort,” not a strategic pivot.
The statement doesn’t mean Strategy is preparing to dump coins onto the
market. But it does mark the first time the leadership has openly accepted that
selling is possible. With preferred dividend payments approaching at year-end
and the company’s finances under closer scrutiny amid Bitcoin’s slide, some
traders wondered whether Strategy might be forced into action.
Based on its latest disclosures, that moment doesn’t appear imminent.
The company has built a sizeable USD reserve to handle obligations , signaling
that while selling Bitcoin is technically on the table, it is not expected to
be part of Strategy’s immediate playbook.
However, MicroStrategy has now acknowledged a scenario many once viewed as impossible: the company could, under pressure, sell some of its Bitcoin. In remarks highlighted by recent reporting, Le laid out the specific chain of events that would force the move.
For a sale to happen, MicroStrategy’s stock would first need to trade below 1x mNAV, meaning the company’s market value drops under the value of its Bitcoin holdings. On top of that, the firm would need to be shut out of raising fresh capital through equity or debt. In other words, if markets refused to fund the company and its share price slipped beneath its Bitcoin valuation, a sale would shift from unthinkable to unavoidable.
Why Traders Should Track Strategy
Strategy isn’t a fringe player. It is widely viewed as the largest
corporate holder of Bitcoin.
If Saylor & co decide to dump a chunk of BTC, that could trigger
panic among crypto-holders who look to institutional moves for cues. The
resulting cascade could amplify downward pressure on price beyond what macro
factors alone would do.
Alternatively, if Strategy uses the cash reserve instead of selling, it
might signal to investors that the downturn is survivable. That could stabilize
sentiment, maybe even set the stage for a rebound if BTC slips enough to
attract bargain-hunters.
In either scenario, Strategy has become a market barometer. Traders
ignoring its moves are gambling without checking the scoreboard.
What It All Says: Bitcoin Is Not an Island
The days when Bitcoin traded mainly on retail emotion may be over. As
firms like Strategy pile hundreds of thousands of BTC onto their books, the
crypto market becomes tightly interwoven with traditional corporate finance.
When BTC crashes, it is not just individual wallets that bleed.
Corporate treasuries, dividend commitments, equity dilution, debt servicing,
all those elements feed into whether BTC gets dumped or held.
Strategy’s recent reserve build and warning about potential sales show
that even its CEO is hedging. That hedging could morph into selling, and if it
does, it could accelerate the crash, or if it doesn’t, it could mark a shift
toward treating Bitcoin as a long-term balance-sheet asset rather than a wild
speculative ride.
For traders and investors that means one thing: watch Strategy like you
watch a central bank. Its moves may tell you more about Bitcoin’s direction
than any chart or tweet.
