Guavy AI Editorial TeamSentiment: -2Clout: 62

CryptoQuant Warns Strategy to Halt Bitcoin Buys Amid Rising Dividend Pressure

CryptoQuant has warned Strategy to pause its Bitcoin purchases and focus on rebuilding cash reserves due to increasing pressure from its preferred stock, STRC.

The company's dividend coverage has dropped sharply to about 14 months as cash reserves fell 38% in 2026, while annual dividend obligations surged to $1.2 billion.

CryptoQuant CEO Ki Young Ju suggests that current Bitcoin buying only defends price ranges rather than driving rallies, recommending a pause and a systematic buying plan.