CryptoQuant has called on Strategy to pause its Bitcoin purchases and rebuild cash reserves, arguing that pressure around its perpetual preferred stock STRC is making the company’s funding structure harder to sustain. The firm said Strategy’s annualized dividend obligations have climbed to about $1.2 billion, while its cash reserve has fallen 38% in 2026. Dividend coverage has also dropped from more than seven years to roughly 14 months.
According to CryptoQuant, Strategy would need around $2.8 billion in cash to restore dividend coverage to 24 months. That figure is roughly double the company’s current cash position after its latest reserve increase. The warning stops short of calling this an immediate cash crisis. The issue, as framed by the firm, is that Bitcoin accumulation, expanding dividend commitments and shrinking liquidity buffers are becoming more difficult to balance while market conditions stay weak.
Ki Young Ju says the market impact of buying has changed
CryptoQuant CEO Ki Young Ju argued that Strategy’s Bitcoin buying is no longer acting as a clear price catalyst in the current environment. In a market facing heavy selling pressure, he said, those purchases look more like a liquidity sink than a force capable of starting a fresh rally. His view is blunt: the buying may be defending a range, not driving upside.
Ju pointed to Bitcoin’s realized cap, which he said rose by $467 billion over the past two years even as price fell 1%. To him, that suggests capital has kept moving through the market without producing a strong upward trend. He also said Bitcoin cycles often include sharp declines, capitulation, weaker holders exiting and whales accumulating, yet this cycle has instead stayed trapped in a wide sideways band. On that basis, he said Strategy should pause purchases, rebuild reserves and move to a model-based buying plan.
Strategy keeps adding BTC while lifting dollar reserves
Strategy has not backed away from accumulation. The company recently bought 520 BTC for about $35 million at an average price of $67,068, taking total holdings to 847,363 BTC. During the same period, it increased its U.S. dollar reserve by $300 million to $1.4 billion, a sign that liquidity has become a larger priority even as Bitcoin buying continues.
The company also raised about $335.5 million through MSTR share sales. Only part of that capital went into the latest Bitcoin purchase, with the remainder supporting the cash reserve. A separate update had also noted that Strategy CEO Phong Le bought $1 million of STRC and said he intended to hold the position until it returned to par value, possibly longer. STRC had already been trading below its $100 par value after sliding near record lows.
STRC and MSTR both remain under market pressure
STRC has become central to the debate over Strategy’s Bitcoin-backed financing model. The preferred stock offers an 11.5% yield and was designed to trade near $100, but it recently fell as low as $82.50. At around $87.40, its effective yield was close to 13.2%. That kind of yield expansion often signals that investors are demanding more compensation to keep holding the product.
MSTR has also weakened with the broader market. Google Finance data showed Strategy shares closed Tuesday at $103.84, down 5.13% on the day, after touching a 52-week low of $103.52 during the session. Bitcoin was trading near $62,556 after failing to hold the $64,000 area. That kept attention fixed on Strategy, still the largest public corporate holder of Bitcoin.
Co-founder Michael Saylor has defended the company’s structure. In earlier remarks, he said Strategy’s Bitcoin and cash reserves exceed outstanding debt by about $48 billion, and that the company has raised more than $60 billion in capital since 2022 to acquire Bitcoin. CryptoQuant’s latest warning does not claim Strategy is facing an immediate cash breakdown, but it does argue that the balance between BTC purchases, dividend costs and reserves is under much tighter strain while Bitcoin trades weakly and STRC stays below par.