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CryptoQuant Warns Strategy to Stop Buying Bitcoin and Strengthen Cash
Blockchain analytics firm CryptoQuant warns that Strategy needs to temporarily halt Bitcoin accumulation and begin rebuilding its cash reserves after the company's financial condition is assessed to be increasingly strained.
According to CryptoQuant's analysis, Strategy's ability to cover dividend obligations has declined significantly. Whereas previously the company had dividend coverage of more than seven years, that figure has now shrunk to around 14 months.
At the same time, the company's cash reserves are reported to have fallen about 38% throughout 2026. This situation has sparked concerns that the aggressive Bitcoin buying strategy is starting to put pressure on 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 to its Bitcoin reserves on its balance sheet.
However, CryptoQuant assesses that 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 important to maintain the company's operations and meet various financial obligations in the future.
The warning comes as Strategy continues to expand its Bitcoin holdings even as the world's largest digital asset price still faces pressure from global macroeconomic conditions, interest rate policies, and increasing risk-off sentiment in financial markets.
Nevertheless, Michael Saylor has maintained a bullish view on Bitcoin. He has repeatedly stated that Bitcoin is the best long-term store of value asset and is the main foundation of the company's strategy.