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CryptoQuant Advises Strategy to Stop Buying Bitcoin and Strengthen Cash
Blockchain analytics firm CryptoQuant warns that Strategy needs to temporarily halt its Bitcoin accumulation and start rebuilding its cash reserves after the company's financial condition was assessed as increasingly strained.
According to CryptoQuant's analysis, Strategy's ability to cover dividend obligations has significantly declined. While previously the company had dividend coverage of more than seven years, that figure has now shrunk to approximately 14 months.
At the same time, the company's cash reserves reportedly fell by about 38% throughout 2026. This situation has raised concerns that the aggressive Bitcoin purchasing strategy is starting to pressure the company's financial flexibility.
Strategy, led by Michael Saylor, has been known in recent years as the public company with the largest Bitcoin holdings in the world. The company consistently uses a combination of cash, stock issuance, and debt instruments to add Bitcoin to its balance sheet.
However, CryptoQuant believes the company needs to be more careful in managing liquidity, especially if crypto market volatility increases or Bitcoin prices experience a prolonged correction. Adequate cash reserves are considered crucial to maintain company operations and meet various financial obligations in the future.
This warning comes as Strategy continues to expand its Bitcoin holdings even though the price of 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 maintained a bullish view on Bitcoin all along. He has repeatedly stated that Bitcoin is the best long-term store of value asset and serves as the main foundation of the company's strategy.