Michael Saylor should halt Bitcoin purchases and rebuild Strategy‘s liquidity reserves, according to a report published by onchain analytics firm CryptoQuant. The company’s perpetual preferred stock, known as STRC, is showing clear signs of financial stress. Last week it fell to an all-time low of $82.5, a 17.5% discount to its $100 par value.
CryptoQuant’s diagnosis points to two simultaneous issues. On one hand, all Bitcoin acquired between 2024 and 2026 is underwater, with unrealized losses amounting to $10.6 billion. On the other, cash reserves dropped 38% since the beginning of 2026, partly due to a $1.5 billion buyback of convertible notes completed in May. Against that backdrop, Saylor’s firm’s dividend obligations nearly quadrupled to $1.2 billion annually, cutting dividend coverage from more than seven years to just 14 months.
Strategy’s annualized dividend obligations have nearly quadrupled to $1.2B, while its cash reserve has fallen 38% in 2026.
Dividend coverage collapsed from 7+ years to just 14 months.
The company needs to stop buying Bitcoin and rebuild cash. pic.twitter.com/TR0oaAnT5k
— CryptoQuant.com (@cryptoquant_com) June 23, 2026
CryptoQuant estimated that restoring even 24 months of coverage would require a reserve of approximately $2.8 billion, twice what the company holds today. The firm also warned that a potential forced sale of BTC at current prices would crystallize unrealized losses and could trigger a fresh decline in Bitcoin’s spot markets. Despite the outlook, Strategy completed an additional purchase of 520 BTC for $35 million on Monday and expanded its dollar reserves by $300 million, bringing the total to $1.4 billion.
Source: https://x.com/cryptoquant_com/status/2069468302099825087
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