CryptoQuant recommended on June 23 that Strategy, formerly MicroStrategy, should pause further Bitcoin purchases and prioritize rebuilding cash reserves, citing rising preferred-stock dividend obligations and reduced liquidity. The recommendation, published by CryptoQuant head of research Julio Moreno, addresses concerns about Strategy's capital structure as the company remains the world's largest corporate holder of Bitcoin with 847,363 BTC. CryptoQuant's analysis centers on STRC, Strategy's variable-rate preferred stock, which fell to $82.50 last week, marking a record 17.5% discount to its $100 par value, while the company's cash reserves have fallen 38% since the start of 2026.
Moreno said the decline reflected more than leveraged investor liquidations. He argued that the discount also pointed to deteriorating fundamentals around cash coverage and dividend obligations, particularly as Strategy continues to use capital markets to fund additional Bitcoin purchases. The company also recently repurchased $1.5 billion of its 0% convertible senior notes due in 2029, further reducing its available cash buffer.
Strategy's Dividend Commitments Increase Fourfold in Six Months
CryptoQuant said annualized dividend commitments have increased from about $300 million at the start of the year to roughly $1.2 billion, a nearly fourfold rise in less than six months. That increase has reduced STRC dividend coverage from more than seven years at the beginning of 2026 to about 14 months, according to Moreno. He estimated that Strategy would need approximately $2.8 billion in cash reserves to restore 24 months of dividend coverage, roughly double its current level.
The analysis highlights a growing tension in Strategy's capital structure. The company's Bitcoin accumulation strategy depends heavily on continued market access and investor confidence in its equity and preferred securities. Strategy has already shown signs of moderating its approach. In its latest weekly disclosure, the company bought 520 BTC for about $34.9 million while also increasing its cash reserve by $300 million to $1.4 billion. Both moves were funded through common stock sales.
CryptoQuant Recommends Cash Rebuild Over Bitcoin Sales
CryptoQuant said selling Bitcoin to rebuild liquidity would be an unattractive option because Strategy is sitting on an estimated $10.6 billion in unrealized losses on coins acquired during 2024, 2025 and 2026. A forced sale, Moreno argued, would crystallize losses at scale and could damage shareholder value.
Instead, the firm said Strategy should pause Bitcoin purchases until cash reserves and dividend coverage are rebuilt. Moreno also recommended a more systematic, model-driven purchase framework, arguing that buying whenever capital is available has reinforced the market perception that Strategy accumulates near local cycle peaks.
The recommendation carries broader implications for corporate Bitcoin treasury strategies. Strategy remains the flagship public-company Bitcoin holder, and its model has influenced other firms considering digital-asset accumulation. The pressure on STRC suggests Bitcoin-heavy balance sheets still require conventional liquidity management, especially when preferred dividends, investor confidence and capital-market access are central to the funding model.
FAQ
What did CryptoQuant recommend Strategy do on June 23?
CryptoQuant recommended on June 23 that Strategy should pause further Bitcoin purchases and prioritize rebuilding cash reserves, citing rising preferred-stock dividend obligations and reduced liquidity.
How much have Strategy's annualized dividend commitments increased?
CryptoQuant said annualized dividend commitments have increased from about $300 million at the start of the year to roughly $1.2 billion, a nearly fourfold rise in less than six months.
Why does CryptoQuant oppose Strategy selling Bitcoin to rebuild cash?
CryptoQuant said selling Bitcoin would be unattractive because Strategy is sitting on an estimated $10.6 billion in unrealized losses on coins acquired during 2024, 2025 and 2026, and a forced sale would crystallize losses at scale.
