Strategy Shifts Focus to Balance Sheet Strength

In a notable strategic pivot, Strategy is moving away from its consistent Bitcoin acquisition strategy to prioritize financial stability. The company's recent actions—a substantial equity raise, a fortified cash position, and a sudden pause in cryptocurrency purchases—raise questions about the steadfastness of its crypto-centric path in the months ahead.

From December 15 to 21, Strategy successfully placed approximately 4.535 million new shares, generating net proceeds of $747.8 million. This infusion has boosted the company's cash reserves to $2.19 billion.

Management has framed this move as explicitly defensive. The primary aim of bolstering liquidity is to cover dividend distributions for the next 12 to 24 months and to service interest payments on existing debt. Following a period of significant share price volatility and a steep decline since the start of the year, this step signals a renewed commitment to balance sheet stability.

The stock closed yesterday at €139.60, hovering just above its 52-week low. Year-to-date, the share price has fallen more than 50%. The significant gap below its moving averages underscores the persistent selling pressure on the equity.

A Pause in Bitcoin Accumulation

Coinciding with the capital increase, Strategy did not purchase any Bitcoin in the reporting week ending December 21, breaking a pattern of consistent buying. Its most recent acquisition occurred on December 15, when it bought 10,645 BTC for $980.3 million at an average price of $92,098 per coin.

Despite the temporary halt, the company's holdings remain substantial:
* Total Holdings: 671,268 Bitcoin
* Average Purchase Price: $74,972 per Bitcoin
* Latest Transaction: 10,645 BTC on December 15 for $980.3 million

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

Bitcoin itself has recently struggled to sustain momentum above the $90,500 level, retreating back to a range between $88,000 and $90,000 after facing resistance. With over 671,000 BTC on its balance sheet, Strategy's share price remains mathematically tethered to the cryptocurrency's market movements.

Market Mechanics and Analyst Adjustments

The changed circumstances are reflected in analyst revisions. On December 22, Citigroup analyst Peter Christiansen established a new price target of $325 for Strategy's stock. While this figure sits considerably below the median analyst target of $475 over the past six months, it still implies theoretical upside from current trading levels.

The stock continues to be a favored proxy for institutional investors seeking exposure to digital assets without holding Bitcoin directly. On December 22, Strategy's shares traded with higher daily volume than those of Wells Fargo, indicating the stock's active use as a trading instrument despite its price decline.

On a macroeconomic level, data shows a slightly negative correlation (-0.14) between Bitcoin and gold. This suggests investors are currently weighting hedging strategies differently and do not view Bitcoin as a direct one-to-one substitute for the traditional safe-haven asset.

Outlook: Liquidity as a Strategic Option

The key variable now is how Strategy will deploy its $2.19 billion war chest in coming quarters. In the near term, it is clearly earmarked for securing dividend and interest obligations—management's stated priority. Simultaneously, this liquidity reserve keeps the company's options open, allowing it to resume aggressive Bitcoin purchases should market conditions stabilize or become more attractive.

This sets the stage for a strategic tension in early 2026: Will Strategy maintain its defensive, balance sheet-focused course, or will management leverage its strengthened position to return to an offensive Bitcoin accumulation strategy? In either scenario, the intrinsic link between the company's valuation and the price of Bitcoin remains the defining characteristic of the stock.