CryptoQuant Warns Strategy to Pause Bitcoin Purchases Amid Cash Reserve Crunch

CryptoQuant has issued a pointed recommendation to Michael Saylor-led corporate Bitcoin buyer Strategy, advising it to stop accumulating BTC and focus on rebuilding cash reserves.

The company's preferred stock STRC hit a record 17.5% discount to par value last week, closing at $82.50 against its $100 par.

Cash reserves have dropped 38% since January 2026, partly because Strategy retired $1.5 billion in convertible notes, shrinking its dividend buffer at exactly the wrong moment.

Strategy's dividend obligations have ballooned from $300 million annualized at the start of the year to $1.2 billion today, a nearly fourfold increase in under six months.