Strategy Told to Halt Bitcoin Purchases Amid Cash Reserve Concerns

Strategy's Bitcoin accumulation strategy has been called into question by CryptoQuant, which suggests that the company should halt its purchases and focus on restoring financial stability. According to CryptoQuant's head of research, Julio Moreno, Strategy's cash reserves have dropped 38% in 2026 while annualized dividend obligations have nearly quadrupled to $1.2 billion.

This has resulted in a collapse of dividend coverage from over seven years to just 14 months, raising concerns about the company's near-term financial footing. A key contributor to the cash decline was Strategy's May repurchase of $1.5 billion in 0% Convertible Senior Notes due 2029.

CryptoQuant recommends that Strategy rebuild its cash reserves to approximately $2.8 billion, equivalent to 24 months of dividend coverage. The firm also suggests that Strategy should overhaul its approach to Bitcoin acquisition timing and adopt a model-driven framework to produce better long-term outcomes.