MicroStrategy Hints It May Sell Bitcoin to Fund Cash Reserve Amid Bitcoin Slump

MicroStrategy disclosed on December 2 that it may selectively divest Bitcoin to bolster liquidity amid a stressed crypto cycle. The company plans a $1.44 billion cash reserve to withstand a protracted Bitcoin winter. If its internal mNAV dips below 1 and refinancing options are exhausted, it could dispose a portion of its BTC holdings, breaking the long-standing ‘never sell’ stance and pressuring its stock. The disclosure coincided with roughly $820 million in convertible-bond pressures and an intraday slide of more than 12% in MSTR, leaving the year-to-date decline near 40% as Bitcoin trimmed losses.

BiyaPay analysts describe the development as evidence that large institutions are adopting a contingency risk-off posture in extreme conditions, potentially fueling short-term volatility in Bitcoin and related stocks. While the platform enables trading MSTR and Bitcoin with USDT, investors should emphasize robust risk controls to avoid liquidations amid heightened market swings.