Michael Saylor's Shift in Focus Prepares for a Market Downturn
MicroStrategy's accumulation of Bitcoin has slowed as bearish indicators become more apparent.
The world’s largest holder of Bitcoin, MicroStrategy, has recently decreased its purchasing activity amid rising signs of a bear market.
“Strategy’s Bitcoin buying has collapsed through 2025,” stated the on-chain analytics provider CryptoQuant in a Wednesday report. They reported a drop in monthly purchases from 134,000 BTC at its peak in 2024 to a mere 9,100 BTC in November 2025, with only 135 BTC acquired so far this month, highlighting a significant slowdown.
“A 24-month buffer makes one thing clear: they’re bracing for the bear market.”
In addition, the report revealed a substantial shift in MicroStrategy’s management of its financial assets.
The company has raised over $1.44 billion through equity issuance to establish a US dollar reserve specifically for covering dividend payments on preferred stock and meeting interest obligations for at least the next year. The firm also hinted at the potential sale of Bitcoin or Bitcoin derivatives as part of its risk management strategy.
This cash reserve aims to ensure the payment of approximately $700 million in annual preferred stock dividends and bond interests for the next 12 to 24 months. This strategy marks a significant departure from their previous practice of continuously converting equity into Bitcoin.
Key changes include a two-pronged approach that separates long-term Bitcoin reserves from short-term liquidity needs, new flexibility in managing Bitcoin or derivative sales for risk mitigation, and reduced Bitcoin purchases.
“Strategy’s shift from aggressive Bitcoin accumulation to a more conservative liquidity-focused treasury approach coincides with Bitcoin’s largest drawdown of 2025, indicating a bearish market phase.”
Currently, MicroStrategy holds 650,000 BTC valued at $61 billion using today’s market prices, up 26% from its average purchase price of about $74,436. However, significant losses could occur if the market enters a lengthy crypto winter.
Additional Insights:
- MicroStrategy’s stock (MSTR) has witnessed a consistent decline, dropping nearly 60% since mid-July, with losses intensifying since early October.
- As of this writing, MSTR trades at $188, reflecting a 4% increase on the day; however, it is down 35% since the beginning of the year.
- Bitcoin is currently priced around $93,600, a figure it last held on January 1 of this year.
