CryptoQuant Urges Michael Saylor’s Strategy to Pause Bitcoin Buys and Rebuild Cash Reserves

Highlights:

• Michael Saylor’s Strategy faces 14 months of STRC dividend coverage after cash reserves fell 38%.
• Annualized dividend obligations have climbed nearly fourfold, reaching about $1.2 billion.
• CryptoQuant estimates a $2.8 billion cash reserve would restore two years of dividend coverage.

On-chain analytics firm CryptoQuant has urged Strategy to pause Bitcoin purchases after its cash position weakened during 2026. Annualized dividend obligations climbed from about $300 million to nearly $1.2 billion. Meanwhile, cash reserves fell 38% since the start of the year.

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CryptoQuant research head Julio Moreno said on June 23 that dividend coverage dropped as those trends converged. Coverage declined from more than seven years to roughly 14 months. He estimated that Strategy needs about $2.8 billion for two years of coverage.

Strategy’s preferred stock STRC reflected those concerns after falling to $82.50 last week. The price marked a record 17.5% discount to its $100 par value. At the current price of around $87.40, the preferred stock offers an effective yield of nearly 13.2%, according to data from the STRC tracker.

The company’s May repurchase of $1.5 billion in convertible notes also reduced available cash. Moreno said the transaction weakened the buffer supporting STRC payments. As a result, the company now has less flexibility as its payout commitments grow.

Strategy’s annualized dividend obligations have nearly quadrupled to $1.2B, while its cash reserve has fallen 38% in 2026.

Dividend coverage collapsed from 7+ years to just 14 months.

The company needs to stop buying Bitcoin and rebuild cash. pic.twitter.com/TR0oaAnT5k

— CryptoQuant.com (@cryptoquant_com) June 23, 2026

Michael Saylor’s Strategy Faces A Weaker Cash Buffer

CryptoQuant said Michael Saylor’s Strategy should rebuild liquidity before making further Bitcoin purchases. The company has used preferred stock issuance to finance Bitcoin accumulation. However, each new STRC issuance increases its annual dividend burden.

Strategy holds about $10.6 billion in unrealized Bitcoin losses, according to CryptoQuant. Moreno said every purchase from 2024 through 2026 currently sits underwater. Therefore, a forced sale would lock in large losses and hurt shareholder value.

However, Strategy does not need to sell Bitcoin to support STRC immediately. Moreno said it can raise STRC’s dividend rate or issue more MSTR shares. The company has already used both options to reassure preferred shareholders. However, those measures do not directly restore cash reserves.

Strategy could suspend STRC dividends, although Moreno viewed that move as unlikely. The payments remain cumulative, so unpaid amounts continue building. A suspension could also weaken confidence and delay any recovery toward par. Therefore, CryptoQuant sees cash rebuilding as the clearest route toward stronger coverage.

CryptoQuant Calls for More Disciplined Bitcoin Purchases

Moreno recommended a model-based framework for future Bitcoin acquisitions. He argued that Strategy should stop buying whenever fresh capital becomes available. Instead, the company could consider market cycles, valuations, and liquidity conditions. Such a process could reduce purchases near local peaks.

He also proposed moderate Bitcoin sales during future bull markets. Those sales could realize gains, reduce leverage, and replenish reserves. Strategy could then use stronger liquidity during weaker market periods. The plan would replace constant accumulation with a more flexible treasury policy.

Meanwhile, Michael Saylor’s Strategy bought 520 Bitcoin for $35 million on Monday, June 22. At the same time, it increased dollar reserves by $300 million to $1.4 billion. The added cash briefly supported STRC, which returned near $88. However, the preferred shares remained below par.

Strategy has increased its USD Reserve by $300 million to $1.4 billion and plans to continue replenishing it to support the credit quality of its Digital Credit securities. We also acquired 520 BTC for $35 million, increasing our $BTC Reserve to ₿847,363. $MSTR $STRC…

— Michael Saylor (@saylor) June 22, 2026

The firm’s stock, MSTR, also fell 5% on Tuesday and closed at $103.84. Bitcoin dropped from above $64,000 to $62,000 during the same session. CryptoQuant said those declines strengthen the case for a temporary buying pause during continued market weakness.

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