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CryptoQuant Warns Strategy to Stop Buying Bitcoin and Strengthen Cash Reserves
Blockchain analytics company CryptoQuant 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's analysis, Strategy's ability to cover dividend obligations has significantly declined. Previously, the company had a dividend coverage ratio of over 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 approximately 38% throughout 2026. This situation raises concerns that the aggressive Bitcoin buying strategy is beginning to put pressure on the company's financial flexibility.
Strategy, led by Michael Saylor, has been known in recent years as a publicly traded 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 cryptocurrency market volatility increases or Bitcoin prices experience prolonged corrections. Adequate cash reserves are considered essential to maintain operations and meet various financial obligations in the future.
The warning comes as Strategy continues to expand its Bitcoin holdings despite the fact that the world's largest digital asset still faces 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 serves as the main foundation of the company's strategy.