CryptoQuant: Strategy to Establish USD Dividend Reserve Fund to Prepare for Bitcoin Bear Market

On December 4, The Block reported that CryptoQuant said in a Wednesday report Strategy recognizes a non-zero chance Bitcoin could face a deep or prolonged pullback. Setting a 24-month USD buffer signals the firm expects Bitcoin may trade sideways or decline over a longer period, and market acceptance of stock financing could drop going forward. CryptoQuant noted the “dual reserve model” — holding both USD and Bitcoin simultaneously — reduces the risk of forced Bitcoin sales during a market downturn. But this marks a strategic shift for Strategy, differing from its approach from 2020 through November 2025, when it consistently bought Bitcoin via stock and convertible bond issuances. “This shift impacts the Bitcoin market significantly,” CryptoQuant stated. “On one hand, Strategy’s reduced marginal Bitcoin buying pressure will weaken the strong demand channel seen in prior bull cycles. On the other, the USD reserve and newly disclosed hedging/selling capabilities sharply lower the odds of forced Bitcoin sales due to financial stress — a positive for long-term market stability.” CryptoQuant added Strategy no longer views its Bitcoin exposure as an untouchable asset in all market conditions. The company’s management now recognizes flexibility is needed to protect its Bitcoin reserve — including cash buffers, hedging, and selective liquidation during times of distress.