Strategy Told to Halt Bitcoin Buys Amid Record Stock Slump and $10.6 Billion in Unrealized Losses

CryptoQuant's analysis firm has issued a warning to Strategy, a company led by Michael Saylor, suggesting that it should halt its Bitcoin buying and focus on rebuilding its cash reserves. The recommendation follows a sharp decline in Strategy's preferred stock, STRC, which fell to $82.50 last week - a 17.5% drop below the $100 level it was designed to trade around.

CryptoQuant cites two main reasons for this warning: Strategy's U.S. dollar reserve has fallen by 38% since the start of 2026, and its annual dividend obligations have nearly quadrupled to $1.2 billion as the company issued more STRC to fund Bitcoin purchases. Dividend coverage has dropped from over seven years to just 14 months.

CryptoQuant's head of research Julio Moreno argues that selling Bitcoin isn't a good fix, since Strategy is sitting on approximately $10.6 billion in unrealized losses on coins bought across 2024, 2025, and 2026. He notes that any forced sale would 'crystallize large losses and destroy shareholder value.'

CryptoQuant suggests that Strategy should pause its Bitcoin buying and rebuild the reserve first, then adopt a systematic approach to timing purchases rather than buying opportunistically. The company still holds the option to raise STRC's dividend yield or issue new MSTR shares to reassure investors without touching its Bitcoin stack.