CryptoQuant: Strategy Should Pause Bitcoin Purchases and Prioritize Rebuilding Cash Reserves

Odaily Planet Daily News - CryptoQuant stated that Michael Saylor's Strategy should currently pause further Bitcoin purchases and prioritize rebuilding cash reserves due to significantly increased dividend obligations, a sharp decline in cash reserves, and expanded unrealized losses on Bitcoin holdings. Julio Moreno, CryptoQuant's Head of Research, pointed out that Strategy's preferred stock STRC fell to $82.50 last week, 17.5% below its $100 par value, marking the largest discount in history. This pressure stems from the Bitcoin bear market environment and the company's reduced cash buffer capacity. The report noted that Strategy recently repurchased $1.5 billion worth of 0% convertible senior notes due in 2029, further reducing the cash buffer available to support STRC dividend payments. Meanwhile, the company's cash reserves have dropped by 38% since early 2026. On the other hand, as Strategy issued more STRC to finance Bitcoin purchases, its annualized dividend obligations have risen from approximately $300 million at the beginning of the year to about $1.2 billion currently, nearly quadrupling in less than six months. CryptoQuant believes the company should adopt a more selective approach to Bitcoin purchases rather than continuing indiscriminate accumulation amid increasing cash pressure.