Strategy Needs To Stop Buying Bitcoin As STRC Flashes Major Red Flags: CryptoQuant

In the latest analysis, CryptoQuant indicated that Michael Saylor’s Strategy “needs to stop” its aggressive Bitcoin acquisition spree. The warning comes as its STRC preferred stock hit record lows amid shrinking cash liquidity. This has raised concerns about the company’s financial flexibility.

CryptoQuant Analysis Spotlights Strategy’s Cash Crunch Amid STRC Tragedy

For context, Strategy’s STRC preferred shares plunged to $82.50 last week from their $100 par value, marking their lowest price ever.

Investors have become even more concerned about the company’s dividend obligations after the semi-monthly dividend proposal was approved. However, the decline in cash position has made matters worse, according to CryptoQuant’s head of research Julio Moreno.

The report shows that the annualized commitments associated with STRC have risen by almost four-fold since the start of 2026, to around $1.2 billion. During the same timeframe, cash reserves have contracted by 38%, with Strategy’s repurchase of $1.5 billion of its 0% Convertible Senior Notes due 2029 making up the bulk of the decline.

Strategy’s annualized dividend obligations have nearly quadrupled to $1.2B, while its cash reserve has fallen 38% in 2026.

Dividend coverage collapsed from 7+ years to just 14 months.

The company needs to stop buying Bitcoin and rebuild cash. pic.twitter.com/TR0oaAnT5k

— CryptoQuant.com (@cryptoquant_com) June 23, 2026

This drop has severely cut into the company’s capacity for paying dividends. Moreno says that Strategy would need about $2.8 billion in cash to bring its two-year dividend coverage back up to normal. “A higher cash reserve is the most direct signal the market needs to regain confidence in STRC,” he said.

STRC dividends are technically up for suspension, but Moreno said that that’s not likely because the dividends are cumulative and will be paid down the road. Stopping them would have the same effect on investor confidence.

Should Michael Saylor’s Company Halt Bitcoin Buying?

The analysis dismisses the idea that Strategy should sell Bitcoin to address the issue. As of now, the firm holds approximately $10.6 billion in unrealized losses on its Bitcoin holdings, Moreno highlighted. “Any forced Bitcoin sale at current prices would crystallize these losses at scale and destroy shareholder value,” he wrote.

Raising STRC’s current 11.5% yield or issuing new MSTR shares, however, are among the other options available to Strategy, Moreno said. Such measures already being taken to comfort investors, he said.

In the end, Moreno advised the company to hold off on buying Bitcoin for the time being and to re-establish liquidity. He also urged the establishment of a disciplined approach to future acquisitions. He concluded, “Buying whenever capital is available is not a strategy — it is a formula for accumulating at cycle peaks.”

Recently, Strategy did adopt such an approach. On Monday, June 22, although it bought $35 million in Bitcoin, it made sure to raise its cash reserves by $300 million to $1.4 billion.

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