On-chain analytics firm CryptoQuant has issued a stark warning to Strategy (formerly MicroStrategy): temporarily stop acquiring Bitcoin and shore up its dollar reserves instead. The call, however, landed two weeks after the company had already begun doing exactly that, raising questions about the timing and necessity of external advice in a fast-moving corporate treasury environment.
The Numbers Behind the Warning
Strategy's cash reserves have plunged 38% since the start of 2026, and its annualized dividend obligations quadrupled from $300 million to nearly $1.2 billion in under six months. The dividend coverage for the company's STRC preferred stock collapsed from over seven years to just 14 months. CryptoQuant's head of research, Julio Moreno, calculates that Strategy needs roughly $2.8 billion in reserves to restore a healthy 24‑month coverage buffer. The STRC itself fell to $82.50, a record 17.5% discount to its $100 par value.
A Pivot Already in Motion
Despite the apparent urgency, BeInCrypto noted that Strategy had already shifted its focus to cash preservation. Last week, the company bought only 520 BTC – a fraction of its usual purchases – and directed $300 million of the $355.5 million raised from a common stock sale into its reserves. This proactive move suggests the firm's internal strategy was already aligned with the concerns CryptoQuant later outlined.
Liquidity vs. Bitcoin Sales
CryptoQuant argues that liquidating Bitcoin to meet obligations is unattractive. Strategy holds an estimated $10.6 billion in unrealized losses, as all BTC purchased since 2024 now sits below entry price. Forced sales would crystallize those losses. Instead, the firm can – and has begun to – issue more shares, raising capital without touching its crypto pile. JPMorgan analysts earlier expressed similar concerns after Strategy's symbolic sale of just 32 BTC, which rattled markets despite its trivial size.
Market Implications
Investors now watch how rapidly Strategy can raise fresh capital while continuing its Bitcoin accumulation. The episode underscores the tension between aggressive digital asset accumulation and the liquidity demands of a company with expanding financial commitments. While Strategy's quick self‑adjustment may ease immediate concerns, the broader signal is clear: even the most committed Bitcoin believers must mind their fiat reserves.
