CryptoQuant Warns STRC of Imminent Financial Crisis

Rheinmetall's shares plummeted 15% after Germany canceled its €12.8 billion frigate deal, but that was not the main focus of this article. Instead, we'll delve into the world of cryptocurrency and a company called Strategy (STRC) which has been buying up Bitcoin to pay dividends.

CryptoQuant's analysis reveals that STRC's cash reserves have dropped 38% in 2026, leaving only 14 months of dividend coverage. Dividend obligations have nearly quadrupled to $1.2 billion annually, putting a significant strain on the company's balance sheet.

STRC's preferred stock has reached a record 17.5% discount to its par value of $100, currently trading at $82.50. This is largely due to Bitcoin's bear market correction and STRC's declining cash reserves.

CryptoQuant urges Strategy to halt its Bitcoin accumulation and focus on rebuilding its cash reserves to approximately $2.8 billion, equivalent to 24 months of dividend coverage. The firm also recommends a systematic approach to future Bitcoin purchases, arguing that buying whenever capital becomes available has resulted in rapid unrealized loss growth.