Strategy's Dividend-Funded Bitcoin Plan Under Fire from CryptoQuant

CryptoQuant has criticized Michael Saylor's company Strategy for its heavy reliance on dividend-backed Bitcoin purchasing, urging it to slow down and rebuild cash reserves.

The firm argues that Strategy's dividend coverage has dropped from seven years to about 14 months, with annual obligations rising to $1.2 billion after preferred share issuances with an 11.5% yield.

CryptoQuant CEO Ki Young Ju notes that Strategy's cash reserve is still down year-to-date by 38% following the repurchase of $1.5 billion in senior notes.