Strategy May Need to Pause Bitcoin Purchases, CryptoQuant Warns

• Strategy’s dividend coverage dropped from over seven years to only 14 months.
• CryptoQuant says rebuilding cash reserves may outweigh further Bitcoin purchases.
• STRC weakness and rising obligations are increasing pressure on Strategy’s model.

CryptoQuant has warned that Strategy may need to halt its aggressive Bitcoin acquisition program as growing dividend obligations and shrinking cash reserves increase financial pressure. The analytics firm argues that rebuilding liquidity should become a priority while market conditions remain uncertain and Bitcoin trades below recent highs.

Dividend Obligations Raise Concerns Over Liquidity

CryptoQuant stated that Strategy’s annualized dividend obligations have climbed to approximately $1.2 billion, creating additional pressure on the company’s balance sheet. At the same time, the firm noted that Strategy’s cash reserves have declined by 38% during 2026.

According to CryptoQuant, dividend coverage has fallen sharply from more than seven years to roughly 14 months. As a result, the company may need to strengthen its cash position before continuing large-scale Bitcoin purchases.

The analytics firm estimated that Strategy would require about $2.8 billion in cash reserves to restore dividend coverage to two years. That figure is nearly double the company’s current cash holdings despite recent efforts to increase liquidity.

CryptoQuant CEO Ki Young Ju also questioned whether Strategy’s Bitcoin buying continues to influence market prices as effectively as it did in previous cycles. He argued that current purchases may be absorbing liquidity rather than driving a sustained rally.

Ju suggested that Strategy adopt a more structured acquisition model. He added that rebuilding reserves could provide greater flexibility while market conditions remain challenging.

Bitcoin Strategy Faces Market and Stock Pressure

Besides, Strategy has continued adding to its Bitcoin holdings. The company recently acquired 520 BTC for approximately $35 million, bringing its total holdings to 847,363 BTC.

Alongside the purchase, Strategy increased its cash reserves by $300 million to around $1.4 billion. The move indicates a growing focus on liquidity management while maintaining exposure to Bitcoin.

Attention has also shifted toward STRC, the company’s perpetual preferred stock product. The security was designed to trade near its $100 par value, yet recent declines pushed it significantly below that level.

Meanwhile, Strategy’s common stock has faced broader market pressure. Shares fell more than 5% during recent trading sessions as investors assessed risks linked to Bitcoin volatility and financing costs.

Even so, company leadership continues to defend the strategy. Executives have highlighted substantial Bitcoin holdings and cash reserves relative to outstanding debt obligations.

CryptoQuant’s assessment does not suggest an immediate financial crisis. However, the firm believes Strategy may need to temporarily pause Bitcoin purchases and prioritize liquidity as dividend commitments continue to grow.

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