The company that made “buy Bitcoin” its entire corporate identity is being told to stop buying Bitcoin. A CryptoQuant report published on June 23 recommends that Strategy, the rebranded MicroStrategy, temporarily halt its Bitcoin acquisitions and focus instead on rebuilding cash reserves that have eroded by 38% this year.
The reasoning is straightforward: Strategy’s dividend obligations have quadrupled, its preferred stock is trading at a steep discount, and the company is sitting on roughly $10.6 billion in unrealized losses from Bitcoin purchased between 2024 and 2026.
The math behind the pause
The company’s annualized dividend commitments have ballooned from approximately $300 million at the start of 2026 to $1.2 billion, driven largely by its issuance of STRC perpetual preferred stock. That’s a fourfold increase in fixed obligations in roughly six months.
CryptoQuant chief analyst Julio Moreno argues that Strategy should target building cash reserves to approximately $2.8 billion. That figure would provide coverage for roughly 24 months of dividend payments at the current rate.
