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CryptoQuant Warns Strategy to Stop Buying Bitcoin and Strengthen Cash Reserves

CryptoQuant blockchain analytics company warns that Strategy needs to temporarily halt Bitcoin accumulation and start rebuilding its cash reserves after the company's financial condition is deemed increasingly strained.
According to CryptoQuant analysis, Strategy's ability to cover dividend obligations has significantly declined. Previously, the company had a dividend coverage ratio of more than seven years, now this figure has shrunk to around 14 months.
At the same time, the company's cash reserves are reported to have decreased by about 38% throughout 2026. This condition raises concerns that the company's aggressive Bitcoin buying strategy is beginning to pressure its financial flexibility.
Strategy, led by Michael Saylor, has been known in recent years as a public company with the largest Bitcoin holdings in the world. The company consistently uses a combination of cash, equity issuance, and debt instruments to increase its Bitcoin reserves on its balance sheet.
However, CryptoQuant assesses that the company needs to be more cautious in managing liquidity, especially if crypto market volatility increases or Bitcoin prices experience prolonged corrections. Adequate cash reserves are considered important to maintain company operations and meet various financial obligations in the future.
The warning comes as Strategy continues to expand its Bitcoin holdings despite the world's largest digital asset still facing pressure from global macroeconomic conditions, interest rate policies, and rising risk-off sentiment in financial markets.
Nevertheless, Michael Saylor has consistently maintained a bullish outlook on Bitcoin. He repeatedly states that Bitcoin is the best store of value asset in the long term and is a core foundation of the company's strategy.