Strategy Told to Pause Bitcoin Buys as Cash Reserves Fall 38%

A growing debate is emerging around Strategy, the company led by Bitcoin advocate Michael Saylor. After new research suggested it should temporarily halt Bitcoin purchases and focus on rebuilding its shrinking cash reserves.

The recommendation comes from CryptoQuant Head of Research Julio Moreno. He argues that the firm’s aggressive accumulation strategy may be putting additional pressure on its financial flexibility at a time when dividend obligations are rising sharply. According to CryptoQuant, annualized obligations tied to STRC Dividend payments. They have climbed from roughly $300 million to $1.2 billion this year. While cash reserves have declined by 38%.

Dividend Coverage Raises Concerns

The latest report highlights a significant drop in Strategy’s dividend coverage ratio. The company’s cash reserves previously covered more than seven years of dividend commitments. That figure has now fallen to just 14 months.

Strategy Cash Reserve ($B) and Dividend Coverage (Months) Chart. Source: CryptoQuant 

The issue gained further attention after STRC Stock traded below its $100 par value. It is reflecting investor concerns about the company’s ability to balance shareholder obligations with its long-term Bitcoin accumulation strategy.

Moreno believes rebuilding cash reserves should become a priority before additional Bitcoin purchases are made. “Strategy should pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework for purchase timing,” he said.

Bitcoin Buying Faces New Questions

For years, Strategy has been one of the largest corporate buyers of Bitcoin, helping fuel institutional interest in the asset. However, some analysts now argue that continuous buying may no longer be delivering the same market impact.

BTC Growth Rate Difference (Market Cap vs. Realized Cap) Chart. Source: CryptoQuant 

CryptoQuant data shows Bitcoin’s realized capitalization has increased by hundreds of billions of dollars over the past two years. While price performance has remained relatively flat. According to Moreno, this suggests that fresh capital is largely changing hands rather than driving meaningful upside.

The report also argues that constant buying may prevent a full market reset. It allows weaker holders to continue exiting positions without a deeper capitulation phase. Despite speculation online about “Michael Saylor Sells Bitcoin.” There is currently no indication that Strategy plans to liquidate a significant portion of its Bitcoin holdings. The company continues to maintain one of the largest corporate BTC treasuries globally.

Strategy’s Bitcoin Holdings Remain Under Pressure

CryptoQuant estimates that Strategy is sitting on billions of dollars in unrealized losses on Bitcoin purchased during 2024, 2025 and 2026. Selling those holdings at current prices could lock in substantial losses and damage shareholder value. Instead, analysts suggest the company focus on strengthening its balance sheet while developing a more disciplined acquisition framework.

For investors following Bitcoin news today, the discussion highlights a broader challenge facing corporate Bitcoin holders. It is balancing long term conviction with financial sustainability. Whether Strategy adopts a slower pace of accumulation remains uncertain. But the growing debate shows that even Bitcoin’s most committed corporate buyer is facing increasing scrutiny as market conditions evolve.

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