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Strategy Shifts to Dual-Reserve, Slows Bitcoin Buying as Forced-Sale Fears Recede

Cantor kept a bullish rating even after slashing its MSTR target, citing the new cash buffer that covers obligations for up to two years.

Overview

  • JPMorgan and Bitwise say Strategy is unlikely to be a forced seller given its cash reserve and mNAV holding near or above 1.0, easing pressure on bitcoin prices.
  • Strategy raised about $1.44 billion via at-the-market equity to fund a liquidity buffer designed to cover preferred dividends and interest for at least 12 months, with a 24‑month goal.
  • The company has pivoted to a dual‑reserve model by pairing long‑duration bitcoin holdings with short‑duration U.S. dollar liquidity and disclosed it may sell BTC or use derivatives if needed.
  • Bitcoin accumulation has slowed sharply to roughly 9,100 BTC in November and just 135 BTC early this month, though total holdings remain near 650,000 BTC.
  • Cantor cut its 12‑month MSTR price target to $229 but kept Overweight, as analysts note no major debt maturities until at least 2027 and say MSCI index‑removal risk appears largely priced in ahead of the Jan. 15 decision.