CryptoQuant Urges Strategy to Pause Bitcoin Buying as Cash Reserves Fall 38%

Key Takeaways

• CryptoQuant says Strategy should temporarily pause Bitcoin purchases and focus on rebuilding cash reserves
• The firm’s cash reserves have fallen 38% this year, while annual dividend obligations jumped from $300 million to $1.2 billion
• Strategy is sitting on roughly $10.6 billion in unrealized Bitcoin losses, making large-scale BTC sales difficult at current prices

Michael Saylor has spent years turning every market dip into another Bitcoin buying opportunity. This is why a new report from CryptoQuant stands out. The on-chain analytics firm is not calling for Strategy to buy the dip. Instead, it seems to be arguing that the company should step back entirely and focus on cash. With Bitcoin hovering near $62,500 and Strategy’s preferred stock under pressure, questions are beginning to rise about how long the current approach can hold up.

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Strategy’s Growing Cash Problem

According to CryptoQuant Head of Research Julio Moreno, Strategy’s cash reserves have fallen 38% since the start of 2026. Meanwhile, the company’s dividend commitments have moved sharply in the opposite direction.

The annualized dividend burden tied to STRC has reportedly jumped from roughly $300 million at the beginning of the year to around $1.2 billion. Amidst this, Strategy used $1.5 billion to repurchase convertible notes due in 2029, leaving a thinner cash cushion behind.

The result is showing up in STRC itself. Dividend coverage, which stood at about seven years earlier this year, has fallen to about 14 months, according to CryptoQuant’s estimates. Moreno believes Strategy should stop buying Bitcoin for now and rebuild reserves before adding to its stack again. He also argues the company needs a more structured approach to accumulation.

But the timing isn’t ideal. CryptoQuant estimates Strategy is currently sitting on roughly $10.6 billion in unrealized Bitcoin losses. Much of the BTC acquired over the past three years is now below cost basis. Selling Bitcoin to raise cash would lock in those losses, making it a difficult option.

At press time, the world’s largest cryptocurrency was priced at $62,631.34 following a notable drop over the past day, week, and month.

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Community Sees a Bigger Issue

CryptoQuant is not the only firm questioning the model. Capriole Investments founder Charles Edwards took a much harsher stance this week. He argues that Strategy has become too reliant on rising Bitcoin prices to support its growing obligations.

Edwards suggested Saylor should focus on reducing debt, rethink some of the company’s yield products, and eventually build Strategy into a Bitcoin-focused financial institution rather than a vehicle that continuously raises capital to buy more BTC.

His warning was rather blunt. He noted that as long as the business depends on Bitcoin’s price continuing higher to support dividends and yields, the risks don’t disappear. They simply get pushed further down the road.

For several years, investors only cared about how much Bitcoin Strategy owned. Now they seem to be starting to pay attention to everything around it.

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