CryptoQuant urges Strategy to pause Bitcoin purchases
6.7 Investments CryptoQuant urges Strategy to halt Bitcoin buys and rebuild cash reserves after a 38% liquidity drop and a fourfold rise in dividend obligations, warning that selling Bitcoin could harm shareholder value.
CryptoQuant has recommended that Strategy pause its Bitcoin purchases and prioritize rebuilding its cash reserves. This advice follows a significant 38% decline in cash reserves since early 2026, alongside a sharp increase in annualized dividend obligations from $300 million to $1.2 billion within just six months. As a result, the coverage ratio for STRC preferred stock dividends has dropped dramatically, falling from over seven years to only 14 months. Additionally, STRC’s value has decreased to $82.50, representing a 17.5% discount to its $100 par value. This decline is attributed to weakening financial fundamentals rather than market volatility. CryptoQuant cautions that selling Bitcoin holdings to raise cash could negatively impact shareholder value. Therefore, it recommends suspending further Bitcoin acquisitions to restore liquidity and stabilize the company’s financial position.
