CryptoQuant: Strategy Should Pause Bitcoin Purchases and Rebuild Cash Reserves

PANews, June 24 – According to The Block, CryptoQuant has advised Strategy to suspend its Bitcoin purchases and prioritize rebuilding its cash reserves. Julio Moreno, the firm’s head of research, pointed out that Strategy’s preferred stock STRC fell to $82.50 last week, a 17.5% discount to its $100 face value, primarily due to Bitcoin bear market pressure combined with a sharp decline in cash reserves. Since the beginning of 2026, Strategy’s cash reserves have decreased by 38%, while dividend obligations have surged from an annualized approximately $300 million at the start of the year to around $1.2 billion currently, driven by additional STRC issuance to fund Bitcoin purchases. Dividend coverage has dropped from over seven years to just 14 months. Moreno estimated that restoring 24 months of dividend coverage would require approximately $2.8 billion in cash, roughly double the current level. He suggested that Strategy should halt Bitcoin purchases until cash reserves and dividend coverage are restored, and establish a systematic timing model to avoid the market perception of “always buying at local tops.” Additionally, the company should formulate a reduction framework during future bull markets to realize gains, reduce leverage, and reserve cash for downturns. Moreno emphasized that Strategy currently holds approximately $10.6 billion in unrealized Bitcoin losses, and forced selling would realize massive losses and harm shareholder value. The company could signal its ability to meet obligations by raising the dividend yield or issuing MSTR shares.

CryptoQuant: Strategy Should Pause Bitcoin Purchases and Rebuild Cash Reserves

Popular Articles