Strategy, the firm led by Michael Saylor, should stop buying Bitcoin and focus on rebuilding cash, according to onchain analytics firm CryptoQuant’s recent note. The warning follows a sharp slide in Strategy’s preferred stock, STRC, which fell to about $82.50 last week, a record 17.5% below the $100 level it’s designed to trade around.
Per CryptoQuant, the squeeze comes from two directions. Strategy’s U.S. dollar reserve has fallen 38% since the start of 2026, while its annual dividend obligations have nearly quadrupled to $1.2 billion as the company issued more STRC to fund Bitcoin purchases. Dividend coverage has dropped from over seven years to just 14 months.
CryptoQuant’s head of research Julio Moreno argued that selling Bitcoin isn’t a good fix either, since Strategy is sitting on roughly $10.6 billion in unrealized losses on coins bought across 2024, 2025, and 2026. He said any forced sale would “crystallize large losses and destroy shareholder value.”
Instead, CryptoQuant’s prescription is for Strategy to pause its Bitcoin buying and rebuild the reserve first, then adopt a systematic approach to timing purchases rather than buying opportunistically. Strategy still holds the option to raise STRC’s dividend yield or issue new MSTR shares to reassure investors without touching its Bitcoin stack.
Bitcoin is currently trading close to $62,000 as hawkish Fed and semiconductor stocks losses deepen the bear tendencies on the cryptocurrency market.
Read more: Bitcoin price prediction
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