CryptoQuant Urges Strategy to Pause Bitcoin Purchases and Rebuild Cash

CryptoQuant has urged Strategy, the bitcoin-focused company chaired by Michael Saylor, to stop buying BTC for now and rebuild its U.S. dollar reserve, according to a report shared with CoinDesk. The onchain analytics firm said the company should become more disciplined about when it buys bitcoin rather than continuing purchases whenever it raises capital.

The warning matters because Strategy has become one of the most visible corporate bitcoin holders, and its financing model is closely watched by crypto markets. CryptoQuant pointed to pressure in STRC, Strategy's preferred stock, as evidence that the company's aggressive accumulation strategy is creating strain around cash coverage and dividend obligations.

According to the report, STRC recently traded about 17.5% below its $100 par level, while the preferred stock carries an 11.5% yield. CryptoQuant said Strategy's dollar reserve has fallen 38% since the start of 2026, even as annual dividend obligations have nearly quadrupled to $1.2 billion.

The firm said Strategy's dividend coverage has dropped from more than seven years to about 14 months. It also cited the company's $1.5 billion May buyback of convertible notes as a factor that reduced the cash buffer supporting STRC.

CryptoQuant said Strategy would need about $2.8 billion in reserves, equal to 24 months of coverage, for STRC to recover, compared with a reported $1.1 billion reserve in mid-June. The report also said Strategy has a $10.6 billion unrealized loss on bitcoin bought in 2024, 2025 and 2026, though CoinDesk noted that a forced BTC sale is not considered likely soon.

Pausing purchases would mark a significant shift for Strategy, which has built a bitcoin stash of roughly 847,000 coins and made continuous accumulation central to its identity. CryptoQuant's recommendation is that Strategy first restore cash reserves, then return to bitcoin buying through a more systematic approach.