Strategy Needs To Stop Buying Bitcoin As STRC Flashes Major Red Flags: CryptoQuant
CryptoQuant has advised Michael Saylor’s Strategy to pause its aggressive Bitcoin acquisition, citing major red flags for its STRC preferred stock.
In a June 23 analysis, CryptoQuant’s head of research Julio Moreno noted that STRC shares recently fell to $82.50, their lowest ever, from a $100 par value. This decline coincides with growing concerns over the company’s ability to meet dividend obligations.
Strategy’s annualized dividend commitments have nearly quadrupled to $1.2 billion since the start of 2026, while cash reserves have fallen 38%, largely due to a $1.5 billion repurchase of convertible notes. As a result, dividend coverage has dropped from over seven years to just 14 months.
Moreno stated that to restore two-year dividend coverage to normal levels, Strategy would need about $2.8 billion in cash. He added that a higher cash reserve is the most direct signal needed for the market to regain confidence in STRC.
Although dividends could technically be suspended, the analyst noted this is unlikely since STRC dividends are cumulative and would still need to be paid later. Suspension would have the same effect on investor confidence.
Moreno dismissed selling Bitcoin to raise cash, as Strategy holds approximately $10.6 billion in unrealized losses. Forcing a sale at current prices would crystallize those losses and destroy shareholder value.
Alternative options include raising STRC’s yield or issuing new MSTR shares. Moreno also recommended that Strategy pause Bitcoin buying and rebuild liquidity, establishing a disciplined approach to future acquisitions. He concluded that buying whenever capital is available is not a strategy but a formula for accumulating at cycle peaks.
On Monday, June 22, Strategy bought $35 million in Bitcoin but also raised its cash reserves by $300 million to $1.4 billion, suggesting the firm is already taking steps to shore up liquidity.