Strategy faces mounting dividend obligations of $1.2 billion annually while cash reserves shrink, raising liquidity concerns.
CryptoQuant advised Strategy to halt Bitcoin purchases and prioritize rebuilding cash reserves after liquidity fell 38% since early 2026. The firm highlighted annualized dividend obligations surging to $1.2 billion, straining financial flexibility.
Dividend coverage has plummeted from over seven years to just 14 months, increasing reliance on capital markets. CryptoQuant recommended restoring reserves to $2.8 billion, equivalent to 24 months of coverage, before resuming BTC accumulation.
Strategy’s Stretch preferred stock (STRC) remains at record lows, fueling concerns over the sustainability of its aggressive Bitcoin strategy under Executive Chairman Michael Saylor.