Strategy's Bitcoin Buying Spree Raises Red Flags Amid Cash Crunch

Strategy's acquisition of Bitcoin has raised concerns about its financial flexibility due to shrinking cash liquidity. The company's STRC preferred shares have hit record lows at $82.50, down from their $100 par value.

CryptoQuant's analysis highlights that Strategy's annualized commitments associated with STRC have risen by almost four-fold since the start of 2026 to around $1.2 billion. Meanwhile, its cash reserves have contracted by 38%, primarily due to repurchasing $1.5 billion of its 0% Convertible Senior Notes due 2029.

This has severely cut into Strategy's capacity for paying dividends. According to CryptoQuant's head of research Julio Moreno, the company needs about $2.8 billion in cash to bring its two-year dividend coverage back up to normal.