CryptoQuant says Strategy prepares for a bitcoin bear market as it sets up US dollar reserve
CryptoQuant suggests Strategy's new $1.44 billion USD reserve signals preparation for a prolonged bitcoin drawdown.Summary
Onchain analytics firm CryptoQuant suggests that Strategy's establishment of a $1.44 billion U.S. dollar reserve, intended to cover dividends and debt interest, indicates the company anticipates weaker market conditions, possibly an extended or deep bitcoin drawdown.
This move marks a tactical shift from Strategy's previous playbook of aggressively issuing equity to buy bitcoin. While reduced marginal buying softens a demand channel, the dual-reserve model (USD and bitcoin) reduces the risk of forced bitcoin sales during downturns, supporting long-run market stability. Strategy's bitcoin purchases have significantly slowed throughout 2025, coinciding with indicators suggesting the market has entered a bearish phase.
Mizuho Securities maintained an 'outperform' rating, clarifying that the USD reserve is a liquidity risk-management tool, not an immediate precursor to selling bitcoin. Strategy believes it can sustain operations for over three years at current prices, viewing bitcoin sales only as a last resort if market conditions remain unfavorable for an extended period.
(Source：The Block)