Strategy Inc.
(NASDAQ:MSTR) should halt Bitcoin (CRYPTO: BTC) purchases entirely, according to CryptoQuant CEO Ki Young Ju, who warns that dividend coverage on (NASDAQ:STRC) preferred stock has collapsed from seven years to just 14 months.
STRC's Cash Cushion Has Quietly Crumbled Strategy's $1.5 billion convertible note buyback in May turned out to be the real culprit behind STRC's slide.
CryptoQuant traced the slide to a cash squeeze hitting from both directions: Strategy's USD reserve has dropped 38% since the start of 2026 while annual dividend obligations have nearly quadrupled to $1.2 billion.
Moreover, CryptoQuant pegs the recovery threshold at $2.8 billion, enough to cover 24 months of dividends.
