CryptoQuant Warns Strategy to Halt Bitcoin Buys Amid Cash Reserves Plunge

CryptoQuant has raised concerns about Michael Saylor's company Strategy, formerly known as MicroStrategy, suggesting that it should slow or halt its aggressive Bitcoin accumulation strategy due to a significant decline in cash reserves.

The company's cash buffer has reportedly fallen by approximately 38% since early 2026, tightening financial flexibility amid ongoing market volatility. According to CryptoQuant's head of research, Julio Moreno, Strategy's liquidity position has weakened as the company continues to prioritize Bitcoin purchases alongside debt servicing and dividend obligations tied to its expanding capital structure.

Moreno noted that a $1.5 billion repurchase of 0% convertible senior notes maturing in 2029 has constrained Strategy's liquidity for STRC dividends, compounded by a 38% drop in cash reserves since early 2026. He also pointed out that Strategy's dividend obligations have risen to $1.2 billion, with the company's appetite for Bitcoin and commitment to STRC issuance practically quadrupling its annual dividend obligations in just six months.

Moreno warned that Strategy needs to rebuild its cash buffer to regain investor confidence, estimating that it would require roughly $2.8 billion in cash to normalize its dividend coverage over the next two years. He suggested that selling Bitcoin is not a viable option right now, as the company is down $10.6 billion on paper, and any forced sale today would lock in massive losses and crush shareholder value.