BlockBeats News, December 4th, according to The Block, CryptoQuant stated in a report released on Wednesday that “Strategy appears to acknowledge a non-zero probability of Bitcoin experiencing a deep or prolonged pullback. Establishing a 24-month USD buffer indicates its expectation that Bitcoin may trade sideways or downwards for a longer period, and the future market’s acceptance of stock financing may decrease.”
CryptoQuant stated that this “Dual Reserve Model” — holding both USD and Bitcoin simultaneously — reduces the risk of being forced to sell Bitcoin during a market downturn. However, this also marks a strategic shift for Strategy, differing from the approach taken from 2020 to November 2025 of continuously purchasing Bitcoin through stock and convertible bond issuance.
“This shift has a significant impact on the Bitcoin market,” CryptoQuant said. “On one hand, Strategy’s reduced marginal Bitcoin buying pressure will weaken the strong demand channel seen in the previous bull market cycle. On the other hand, the USD reserve and newly disclosed hedging/selling capabilities significantly reduce the probability of forced Bitcoin selling due to financial pressure, which is beneficial for long-term market stability.”
CryptoQuant added that Strategy no longer views its Bitcoin exposure as an untouchable asset under all market conditions. The company’s management now recognizes that to protect the Bitcoin reserve, flexibility is needed — including cash buffers, hedging, and selective liquidation in times of distress.
