Strategy Shares: A Pivot to Preservation Amid Steep Decline

Strategy US5949724083

The equity of Strategy has encountered severe turbulence, shedding approximately 60% of its value since its peak in July. In a decisive response to the recent share price collapse, the company's leadership has executed a radical strategic reversal. The prior focus on aggressive expansion has been abruptly replaced by a paramount objective: safeguarding liquidity. Management has rapidly assembled a multi-billion dollar financial buffer intended to prevent the firm from entering a perilous downward cycle of forced asset sales.

CEO Phong Le has implemented dramatic measures to stabilize the company's balance sheet against the falling stock price. In a remarkable span of just 8.5 days, Strategy built a cash reserve of $1.44 billion. This capital serves a specific and critical purpose: to neutralize market fears that the company could be compelled to liquidate its Bitcoin holdings.

According to corporate statements, this liquidity reserve is sufficient to cover all dividend payments and debt obligations for the next 12 to 24 months. The move is a direct counter to growing investor unease and "FUD" (fear, uncertainty, and doubt), which had centered on the potential for distressed selling as a last resort. Matt Hougan, Chief Investment Officer at Bitwise, emphasizes that Strategy faces no current pressure to offload digital assets, as no loans are due until 2027.

Divergent Views from Major Players

Despite the negative price trajectory, certain institutional investors are using the depressed valuation to increase their stakes. Sassicaia Capital Advisers notably expanded its position by 3,290% in the second quarter, now holding shares valued at over $26 million. Meanwhile, analysts at JPMorgan have begun to classify the company's stability as systemically important for the short-term trend of the broader Bitcoin market.

A significant gap exists between fundamental assessment and technical reality. The average analyst price target of $485.80 continues to suggest substantial upside potential. However, the chart presents a contrasting picture, with the share price currently at €153.80—nearly 50% below its key 200-day moving average. In the near term, bearish sentiment clearly dominates, with the discrepancy between valuation and price trend representing the prevailing risk.

A Drastic Slowdown in Accumulation

Operational data reveals a stark shift in the company's behavior. The pace of Bitcoin accumulation has been sharply reduced, signaling a reprioritization of capital allocation:

• Late 2024: Average monthly purchases of 134,000 BTC.
• November 2025: Purchases declined to 9,100 BTC.
• December 2025: Only 135 BTC have been acquired to date.

Rather than aggressively expanding its portfolio, management is now concentrated almost exclusively on preserving its existing capital resources.