Strategy Shifts Focus: Bolstering Cash Reserves Over Bitcoin Purchases

The company formerly known as MicroStrategy, now simply Strategy, is not abandoning its high-stakes bitcoin strategy. However, it has initiated a notable tactical pause. Rather than accumulating more digital currency, the firm is fortifying its war chest with billions in fresh capital. This move raises a pivotal question for investors: how skillfully is Strategy navigating the balance between maintaining bitcoin exposure and ensuring rock-solid liquidity?

In a significant departure from recent activity, Strategy did not purchase any bitcoin during the week of December 15 to 21, 2025. This contrasts sharply with its actions in the prior week, when it acquired approximately 10,645 bitcoin for about $980.3 million.

The company’s substantial digital asset holdings remain unchanged:
* Total Bitcoin Holdings: 671,268 BTC
* Portfolio Valuation: Exceeds $60 billion (based on current market prices)
* Average Purchase Price: Roughly $74,972 per bitcoin

The decision to hold new cash rather than immediately converting it into bitcoin suggests a period of tactical restraint. Market observers may interpret this as an effort to preserve flexibility amid volatile prices trading near key support levels, avoiding a strategy of buying at any cost.

Raising Billions Through Equity Markets

Amid a highly volatile trading environment, Strategy recently secured a massive influx of equity capital. Utilizing an At-The-Market (ATM) offering program, the company sold approximately 4.5 million Class A shares, generating net proceeds of around $748 million.

This injection has significantly strengthened its balance sheet, boosting liquid reserves from about $1.4 billion to roughly $2.2 billion. Management states these funds are allocated for general corporate purposes, primarily:
* Servicing interest payments on outstanding debt
* Paying dividends on preferred stock

The company continues to pay no dividend on its common stock, emphasizing share price appreciation and asset value growth. The ATM program remains a powerful tool, with approximately $11.8 billion in remaining capacity for future equity raises if needed.

Should investors sell immediately? Or is it worth buying Strategy?

Stock Performance and Valuation Dynamics

The market presents a mixed picture for Strategy’s shares. Currently trading at €143.10, the stock sits far below its 52-week high of €391.80. Year-to-date, the decline exceeds 51%, though a modest recovery of about 3.8% has occurred over the past seven trading days.

Notably, the Relative Strength Index (RSI) stands at a high 84.2, traditionally indicating overbought conditions—even after a twelve-month drop of more than 55%. Coupled with an annualized 30-day volatility above 59%, the equity remains exceptionally prone to sharp swings.

For analysts, valuation continues to hinge on the underlying assets. The enormous bitcoin treasury provides a tangible base value, seen as a theoretical floor for the company's worth as long as the crypto market remains intact.

Key assessment metrics include:
* Company Market Capitalization: Approximately $47 billion
* Analyst Consensus Price Target: About $434 per share
* Implied Upside Potential: Over 160% from current levels, contingent on effective debt management and crypto market cooperation

Analysts highlight the premium to net asset value (NAV/mNAV). Maintaining this premium is viewed as crucial to justifying elevated price targets. The combination of a halted bitcoin buying spree and a $2.2 billion cash cushion can thus be seen as a defensive maneuver—aimed at stabilizing this premium and securing liquidity for interest and preferred dividend obligations.

Conclusion: A Pivotal Phase Ahead

Strategy has temporarily shifted its emphasis from aggressive bitcoin accumulation to liquidity preservation. Its balance sheet is now bolstered by substantial cash, while its bitcoin hoard remains historically large. The critical question for the coming weeks is whether this reserve will be deployed for additional bitcoin purchases or primarily serve as a safeguard for debt and dividend commitments. The chosen path will directly influence the company’s valuation, its NAV premium, and the market’s subsequent reaction.