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CryptoQuant has urged Strategy to pause Bitcoin purchases and rebuild cash reserves as rising dividend obligations and shrinking liquidity pressure the company’s preferred stock.
The recommendation came from CryptoQuant Head of Research Julio Moreno, who argued in a June 23 report that pressure on STRC could make it more difficult for Strategy to raise capital for future Bitcoin purchases. Moreno said rising dividend costs and shrinking reserves have reduced the financial cushion supporting STRC, the company’s flagship preferred stock.
Strategy’s aggressive accumulation strategy has helped it amass 847,363 BTC, making it the world’s largest corporate Bitcoin holder. CryptoQuant argued that rebuilding liquidity has become a more immediate priority for STRC investors than expanding Strategy’s Bitcoin holdings.
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
STRC fell to $82.50 last week, marking a record 17.5% discount to its $100 par value. The decline followed Bitcoin’s recent weakness and came as Strategy’s cash reserves fell 38% from the start of 2026.
Moreno said Strategy’s annualized dividend obligations have expanded from roughly $300 million at the beginning of the year to around $1.2 billion today after the company issued additional STRC shares to help fund Bitcoin purchases.
CryptoQuant estimates that dividend coverage has dropped from more than seven years to about 14 months. Moreno calculated that Strategy would need approximately $2.8 billion in cash reserves to restore two years of coverage, compared with about $1.4 billion held in mid-June.
The report also pointed to Strategy’s $1.5 billion repurchase of 0% convertible senior notes due in 2029 during May 2026, which reduced liquidity available to support future dividend payments.
Moreno argued that selling Bitcoin to replenish reserves would be difficult because Strategy is sitting on an estimated $10.6 billion unrealized loss across coins acquired in 2024, 2025 and 2026. He warned that disposing of those holdings at current prices would lock in losses and damage shareholder value.
CryptoQuant acknowledged that Strategy has alternatives. The company isn’t required to sell Bitcoin to support STRC and can continue issuing common shares or increase the current 11.5% dividend yield to reassure investors. Strategy also raised about $300 million in cash while purchasing 520 BTC in its latest weekly disclosure.
Moreno proposed three measures for management: suspend Bitcoin purchases until reserves recover, adopt a model-driven approach for future acquisitions, and consider taking profits during future bull markets. He argued that Strategy’s practice of buying Bitcoin whenever capital becomes available has contributed to a perception among investors that the company tends to accumulate the cryptocurrency near local market tops.
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