Strategy’s Bitcoin accumulation plan is drawing sharper scrutiny as the company’s financing burden rises. Julio Moreno, Head of Research at CryptoQuant, said Strategy has kept issuing STRC preferred shares to support ongoing Bitcoin purchases, lifting annual dividend obligations from about $300 million at the start of 2026 to $1.2 billion now.
Its liquidity cushion has moved in the opposite direction. Over the same period, cash reserves reportedly dropped 38%. The company also spent $1.5 billion to repurchase convertible senior bonds due in 2029. Those steps were aimed at managing liabilities, but they also reduced financial flexibility and added to future commitments.
Dividend coverage has narrowed to 14 months
Moreno’s analysis shows the period Strategy could cover its STRC dividend payments has fallen from more than seven years at the beginning of the year to just 14 months today. By his estimate, the company would need around $2.8 billion in cash reserves to secure two years of dividend payments, nearly twice its current liquidity position.
Strategy could suspend dividends on a technical basis, but the obligations are cumulative. Delaying payment would not remove the liability. Moreno warned that such a decision could weaken investor confidence and damage the company’s standing in the market.
Unrealized Bitcoin losses limit room to maneuver
Pressure is also coming from the balance sheet value of its Bitcoin holdings. The report said Strategy is believed to be carrying roughly $10.6 billion in unrealized Bitcoin losses. Most of the coins bought in 2024, 2025, and 2026 are still below their purchase price, which makes large-scale sales unattractive at current levels.
Given that backdrop, Moreno argued that a temporary pause in Bitcoin purchases would be the healthier financial choice until the company improves its cash position and strengthens its ability to meet dividend commitments. The point is not about abandoning the strategy, but about changing priorities.
Moreno calls for a more disciplined accumulation model
Moreno said Strategy now needs a more systematic and data-based approach to building its Bitcoin position, especially as criticism persists that the company tends to buy near market highs. He also suggested selling part of its Bitcoin holdings in a future bull market to reduce debt, rebuild cash reserves, and regain strategic flexibility.
The debate around Strategy is now centered on a straightforward question: should rapid Bitcoin accumulation remain the top objective, or should near-term financial stability take precedence. The issue has shifted from the size of the Bitcoin reserve to the cost of maintaining it.