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CryptoQuant Reminds Strategy to Stop Buying Bitcoin and Strengthen Cash
Blockchain analytics firm CryptoQuant warns that Strategy needs to temporarily halt Bitcoin accumulation and start 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. If previously the company had a dividend coverage of more than seven years, this figure has now shrunk to around 14 months.
At the same time, the company's cash reserves are reported to have dropped about 38% throughout 2026. This condition raises concerns that the aggressive Bitcoin buying strategy is beginning to pressure the company's financial flexibility.
Strategy, led by Michael Saylor, has been known for several 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 reserves to 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 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 increasing risk-off sentiment in financial markets.
Nevertheless, Michael Saylor has consistently 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.