Strategy Should Pause Bitcoin Buys and Rebuild Cash, Cryptoquant Warns as STRC Stays Below Par

Strategy Inc. (Nasdaq: MSTR) should pause its bitcoin accumulation and prioritize rebuilding cash reserves, according to onchain data firm Cryptoquant. The warning follows a sharp deterioration in the metrics supporting the firm’s preferred-stock dividends. Cryptoquant Head of Research Julio Moreno said the company’s dividend coverage has fallen from more than seven years at the start of 2026 to just 14 months. Over the same period, annual dividend obligations have climbed from about $300 million to roughly $1.2 billion as the firm issued more STRC preferred stock to fund bitcoin purchases. Moreno noted that Strategy recently repurchased $1.5 billion of its 0% convertible senior notes due in 2029, a move that reduced cash available to support growing dividend payments. The strain is visible in the market price of the preferred shares. Strategy’s STRC has struggled to return to its $100 par value, even slipping below $90 at points. A bitcoin rebound has not fixed the problem, suggesting the discount reflects deeper concerns than short-term price swings. To restore 24 months of dividend coverage, Moreno estimated Strategy would need roughly $2.8 billion in cash reserves, close to double its present level. However, the firm’s cash position has fallen by 38% since the start of 2026, even as dividend obligations have multiplied. The recommendation to pause bitcoin cuts against Strategy’s core playbook of relentless accumulation. While Michael Saylor has argued the firm may sell bitcoin if needed, the immediate question is whether Strategy adjusts course. A pause in purchases and rebuild toward $2.8 billion would ease dividend-coverage concerns but mark a notable shift for a company synonymous with buying bitcoin at every opportunity.

Source: https://news.bitcoin.com/strategy-cryptoquant-strc-dividend-coverage-2026/