Strategy Urged to Pause Bitcoin Buying as Cash Reserves Face Pressure

Strategy is facing growing pressure to slow its aggressive accumulation strategy after new analysis highlighted concerns about its shrinking cash reserves and rising financial commitments.

According to CryptoQuant, the company should temporarily halt additional Bitcoin purchases and focus on rebuilding its cash position. The warning comes as STRC, Strategy’s flagship preferred stock, recently traded around $82.50, about 17.5% below its intended $100 level.

Cash Reserve and Dividend Coverage Decline

The report notes that Strategy’s US dollar reserves have fallen 38% since the start of 2026, while annual dividend obligations linked to STRC have surged from roughly $300 million to $1.2 billion. As a result, dividend coverage has dropped sharply from more than seven years to only 14 months.

A major factor was the company’s $1.5 billion buyback of convertible notes in May, which reduced the cash buffer supporting preferred shareholders.

Bitcoin Losses and Future Risks

CryptoQuant estimates Strategy is currently sitting on an unrealized Bitcoin loss of approximately $10.6 billion, with coins purchased during 2024, 2025 and 2026 remaining below their acquisition prices. The firm warned that selling Bitcoin at current levels would lock in substantial losses and damage shareholder value.

Despite the concerns, a forced sale appears unlikely. Strategy can still raise dividends or issue new shares to support its obligations. However, analysts argue that rebuilding reserves before making further Bitcoin purchases would strengthen the company’s financial position and reduce pressure on STRC.