Strategy Stops Buying Bitcoin as the Treasury Flywheel Reverses

People are saying the "flywheel runs backward" as Strategy has apparently halted its Bitcoin purchasing run and is instead concentrating on liquidity and debt management.

The main change is that the company, which had been practically automatically gathering BTC, is now concentrating on cash reserves and balance-sheet protection. Reports indicate it has also recently sold some Bitcoin to help preferred dividends and strengthen its U.S. dollar reserve, which reached almost $3 billion.

That is important since Strategy has been among the most significant marginal purchasers of Bitcoin and hence even a pause would compromise a main source of structural demand. Less about quick selling pressure and more about the signal that corporate treasury demand might be declining as credit and financing conditions get tighter for the market.