Investing.com - Strategy Inc., a subsidiary of Michael Saylor, has temporarily halted its Bitcoin purchases as it increased its cash reserves to $2.19 billion, which may indicate its readiness for an extended downturn in the cryptocurrency market.

According to a filing made by the company on Monday to the U.S. Securities and Exchange Commission, the Virginia-based company raised $748 million through common stock sales in the week ending December 21. This halt follows Bitcoin purchases totaling nearly $2 billion over the previous two weeks, raising the company's total holdings to around $60 billion.

Earlier in December, Strategy established a reserve of $1.4 billion specifically allocated for future dividend and interest payments, addressing concerns that the company may have to sell Bitcoin if prices continue to drop. The price of Bitcoin has fallen by about 30% since reaching its all-time high in early October, while Strategy's shares have dropped by more than 50% during the same period.

According to Strategy's website, the company's mNAV index, a key valuation metric comparing the value of the firm to its Bitcoin holdings, was approximately 1.1 on Monday.