CryptoQuant Advises Strategy to Pause Bitcoin Purchases, Rebuild Cash as Dividend Obligations Soar

According to CryptoQuant research head Julio Moreno in a Tuesday report, Michael Saylor's Strategy should pause bitcoin purchases and focus on rebuilding cash reserves. The recommendation comes as Strategy's preferred stock STRC fell to $82.50 last week, down 17.5% from its $100 par value, amid mounting dividend obligations and depleted cash reserves.

Strategy's dividend obligations have surged nearly fourfold, from approximately $300 million annually at the start of 2026 to roughly $1.2 billion today, while cash reserves have fallen 38% over the same period. As a result, dividend coverage has contracted sharply from over seven years to just 14 months. Moreno estimates Strategy would need about $2.8 billion in cash reserves—roughly double current levels—to restore 24 months of dividend coverage. Selling bitcoin is not viable, as the company holds approximately $10.6 billion in unrealized losses.