Key Takeaways Julio Moreno from CryptoQuant recommends Strategy halt bitcoin acquisitions and prioritize cash reserve restoration Strategy’s preferred stock STRC plunged to $82.50, marking a
Strategy confronts a financial challenge that extends beyond cryptocurrency market volatility.
Julio Moreno, CryptoQuant’s head of research, released an analysis Tuesday recommending Strategy immediately halt bitcoin acquisitions and concentrate on strengthening its cash reserves. This warning arrives as STRC, the company’s preferred stock instrument, plummeted to a historic low of $82.50 last week—representing a 17.5% discount from its $100 par value.
CryptoQuant Suggests Strategy Pause Bitcoin Accumulation and Prioritize Rebuilding Cash Reserves
CryptoQuant Head of Research Julio Moreno said that as Strategy continues issuing STRC preferred stock to fund Bitcoin purchases, its annualized dividend obligations have risen from… pic.twitter.com/zYzl6W9VJ5
— Wu Blockchain (@WuBlockchain) June 24, 2026
Moreno’s argument centers on a troubling trend: escalating dividend commitments paired with deteriorating cash liquidity.
The company’s annual dividend obligations have surged from approximately $300 million at the beginning of 2026 to roughly $1.2 billion presently. This represents a nearly 400% increase within half a year, fueled by Strategy’s continued issuance of STRC to finance bitcoin acquisitions.
Concurrently, the company’s cash holdings have declined 38% since January. Strategy also executed a $1.5 billion buyback of its 0% convertible senior notes maturing in 2029, further depleting available liquidity.
The outcome: dividend coverage has plummeted from exceeding seven years at the start of 2026 to a mere 14 months currently.
Moreno calculates that Strategy requires approximately $2.8 billion in cash reserves to reestablish a more sustainable 24-month dividend coverage buffer—essentially double its current holdings.
Liquidating bitcoin holdings to achieve this target presents its own complications. Strategy currently carries an aggregate unrealized bitcoin loss approaching $10.6 billion. Every bitcoin acquisition made throughout 2024, 2025, and 2026 remains below cost basis.
“Any forced Bitcoin sale at current prices would crystallize these losses at scale and destroy shareholder value,” Moreno wrote.
This creates a strategic bind: the company cannot easily liquidate bitcoin assets, yet continuing to issue preferred stock without adequate cash backing proves equally problematic.
STRC dividends accumulate, meaning suspension of payments merely defers rather than eliminates the obligation. Moreno believes suspension remains improbable given the reputational damage it would inflict.
Beyond freezing purchases, Moreno proposed two additional measures. He advocates for Strategy to implement a data-driven methodology for timing bitcoin acquisitions rather than purchasing opportunistically whenever capital becomes available.
“‘Strategy always buys the local top’ has become a genuine market meme,” he wrote.
He further recommends the company establish protocols for strategic bitcoin sales during future bull cycles—an approach Strategy has never executed at meaningful scale—to realize profits and replenish cash reserves.
JPMorgan analysts raised comparable concerns earlier this month following Strategy’s sale of 32 bitcoin, a transaction that “spooked” markets despite its minimal scale.
Strategy retains options including raising its 11.5% STRC dividend yield or issuing MSTR common stock to demonstrate dividend-paying capacity. Moreno recognizes both mechanisms remain available but cautioned: “the path back to $100 is not straightforward.”
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