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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 its Bitcoin accumulation and start rebuilding its cash reserves after the company's financial condition is assessed to be under increasing pressure.
According to CryptoQuant's analysis, Strategy's ability to cover dividend obligations has declined significantly. While the company previously 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 by about 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 the largest public company Bitcoin holder in the world. The company consistently uses a combination of cash, share 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 essential to maintain company 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 faces pressure from global macroeconomic conditions, interest rate policies, and rising risk-off sentiment in financial markets.
Nonetheless, Michael Saylor has maintained a bullish view of Bitcoin. He has repeatedly stated that Bitcoin is the best long-term store of value and serves as the main foundation of the company's strategy.