Last updated on June 26th, 2026 at 03:45 pm
CryptoQuant has cautioned that Michael Saylor’s Strategy may need to slow its aggressive Bitcoin acquisition strategy as mounting dividend obligations and declining cash reserves put pressure on the company’s financial position.
The warning comes after Strategy’s STRC preferred shares fell to a record low of $82.50 last week, down from their $100 par value. The decline has intensified investor concerns over the company’s ability to maintain financial flexibility while continuing to expand its Bitcoin holdings.
CryptoQuant CEO Ki Young Ju says Strategy should “pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework for purchase timing.” pic.twitter.com/UNnOJR7rsc
— Aasim Mahmood | ₿ (@K9Aasim) June 24, 2026
Dividend commitments rise as cash reserves decline
According to CryptoQuant Head of Research Julio Moreno, Strategy’s annualized dividend obligations linked to STRC have surged to approximately $1.2 billion in 2026, nearly four times higher than at the beginning of the year.
At the same time, the company’s cash reserves have dropped by 38%. A factor behind the decline was Strategy’s repurchase of $1.5 billion worth of its 0% Convertible Senior Notes due in 2029.
Moreno noted that the shrinking cash position has significantly weakened the company’s dividend coverage. He estimated that Strategy would need around $2.8 billion in cash to restore a more comfortable two-year dividend coverage level and improve investor confidence in STRC.
Should Strategy pause its Bitcoin purchases?
CryptoQuant argued that rebuilding liquidity should take priority over additional Bitcoin purchases in the near term.
Moreno said the company should adopt a more disciplined approach to future acquisitions rather than purchasing Bitcoin whenever capital becomes available. He warned that such an approach risks accumulating large positions during market peaks while reducing financial flexibility.
The analysis suggests that strengthening the balance sheet could help restore market confidence and ease concerns surrounding the preferred stock program. A recent Fortune analysis highlighted the growing financial commitments tied to the company’s aggressive expansion.
Why selling Bitcoin is not the preferred option
Despite the liquidity concerns, CryptoQuant does not believe selling Bitcoin is the right solution.
The firm estimates that Strategy currently holds roughly $10.6 billion in unrealized losses on its Bitcoin position. Selling a portion of those holdings at current market prices would lock in those losses and potentially damage shareholder value.
Instead, Moreno pointed to alternatives such as increasing STRC’s current yield or raising additional capital through new MSTR share issuances.
Strategy has already shown signs of balancing liquidity and acquisitions. On June 22, the company purchased $35 million worth of Bitcoin while simultaneously increasing its cash reserves by $300 million, bringing total cash holdings to approximately $1.4 billion.
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