• MicroStrategy establishes a $1.44 billion reserve to cover dividends and debt obligations securely.
• Bitcoin purchases decreased significantly from 134,000 BTC through November 2024 to 9,100 through November 2025.
• CryptoQuant sees Bitcoin trading between $70,000 and $55,000 during the present bear market.

MicroStrategy has strengthened its financial position by creating a $1.44 billion U.S. dollar reserve to protect preferred dividend payments and debt obligations. WuBlockchain pointed out the CryptoQuant analysis that confirms that the company is preparing for an extended bear market as the market conditions decline and the Bitcoin trend loses strength for the major technical indicators.

MicroStrategy’s Strategic Shift Toward Liquidity Protection

According to CryptoQuant, the reserve signaled the start of the bear market, and the start of the bear market was traced back to early November. CryptoQuant expects the Bitcoin price to stay inside the consolidating range until 2025. The price targets for Bitcoin range between $70,000 and $55,000 if the bearish trend continues.

MicroStrategy CFO Andrew Kang stated that the cash reserve enhances the liquidity buffers that are applied as the mNAV stays above one. t an estimated Bitcoin price near $92,700, the company can reportedly manage operating costs and dividend commitments for more than three years, without having to sell Bitcoins except for last resort options.

The update reflects an important shift in strategy. MicroStrategy does not treat their bitcoins as off-limits no matter the situation. What the management does now is use adaptive approaches to protect their assets. These include maintaining cash reserves, considering hedging strategies, and exploring selective monetization during distressed market conditions to preserve long-term corporate sustainability.

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Declining Bitcoin Purchases Reflect Market Reality

CryptoQuant observed that there was a significant deceleration of MicroStrategy’s bitcoin purchases throughout 2025. The number of monthly bitcoin acquisitions decreased from 134,000 units of bitcoin purchased in November 2024 to 9,100 units acquired in November 2025. The total acquired during December is merely 135 units.

The new reserve corresponds to Bitcoin’s largest drawdown of 2025. Most indicators are now pointing to the bearish phase, according to CryptoQuant. The Bull Score Index fell to zero for the first time since January 2022. The supported the expectation for an extended period of consolidation rather than the start of the new bull cycle and rapid acceleration.

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