CryptoQuant: Strategy Should Pause Bitcoin Purchases and Rebuild Cash Reserves

CoinFeed, June 24 – According to The Block, CryptoQuant recommends that Strategy suspend its Bitcoin purchases and prioritize rebuilding cash reserves. Research head Julio Moreno noted that Strategy’s preferred stock STRC fell to $82.50 last week, a 17.5% discount to its $100 face value, mainly due to Bitcoin bear market pressure coupled with a sharp decline in cash reserves. Since early 2026, Strategy’s cash reserves have decreased by 38%, while dividend obligations have surged from an annualized approximately $300 million at the start of the year to about $1.2 billion currently, driven by additional STRC issuances to fund Bitcoin acquisitions. The dividend coverage ratio has dropped from over seven years to just 14 months. Moreno estimates that restoring a 24-month dividend coverage would require approximately $2.8 billion in cash, roughly double the current level.