TL;DR:

Reserve loss: The cash reserves of the company Strategy have recorded a 38% decline since the start of 2026.
Financial obligations: The firm’s annualized dividend commitments increased from $300 million to about $1.2 billion in less than six months.
Reduced coverage: The dividend coverage capacity for STRC preferred stock dropped from more than seven years to just 14 months in the current year.

The on-chain analytics firm CryptoQuant recommended that Michael Saylor’s company, Strategy, temporarily halt its Bitcoin purchases to focus its efforts on rebuilding its cash reserves.

This warning arises following the detection of an increase in its dividend obligations, a setback in its liquid funds, and the accumulation of unrealized losses in its cryptocurrency holdings. The report issued this Tuesday by Julio Moreno, head of research at CryptoQuant, reveals that bear market pressure coincided with a drop in the value of the company’s STRC preferred stock, which retrograded last week to $82.50, establishing a record 17.5% discount against its $100 par value.

Some argue that Strategy's STRC falling below the $100 mark was primarily the result of leveraged positions being liquidated.

While this may be true to some extent, we believe the correction was largely driven by a deterioration in Strategy's fundamentals, as STRC's dividend… pic.twitter.com/Gt8JrU5qgG

— Julio Moreno (@jjcmoreno) June 23, 2026

The impact of the accumulation strategy on Strategy’s liquidity

The data compiled by CryptoQuant indicates that the corporation recently repurchased $1.5 billion of its 0% convertible senior notes due in 2029. This action reduced the capital cushion available to support STRC stock dividends, in a context where the company’s available cash has already decreased by 38% since the beginning of 2026.

At the same time, dividend obligations rose due to the issuance of more preferred stock intended to finance previous purchases of the digital asset. According to the estimates presented by Moreno, this annualized commitment went from $300 million at the beginning of the year to nearly $1.2 billion today, multiplying fourfold in less than six months.

As a result of this imbalance, the dividend coverage of the STRC dropped drastically to an estimated period of 14 months. According to the analytics firm’s technical report, Strategy would need to accumulate about $2.8 billion in monetary reserves to restore a healthy 24-month coverage, which represents double its currently reported level. The chief analyst pointed out that an increase in this section is the direct signal the market demands to regain confidence.

Portfolio losses and capitalization alternatives

The alternative of liquidating part of the crypto portfolio to provide liquidity to the treasury appears unfeasible under current macroeconomic conditions. CryptoQuant data suggests that Strategy experiences an aggregate unrealized loss of approximately $10.6 billion in Bitcoin, given that all acquisitions made during the years 2024, 2025, and 2026 are currently below their entry price.

Any forced sale at current market prices would consolidate these losses on a large scale, immediately destroying value for the firm’s shareholders. Although internal regulations do not compel the sale of assets to back the STRC, the company has resorted to increasing the dividend yield to 11.5% and issuing MSTR common stock to demonstrate payment solvency, tools that the source confirms are already operational.

Earlier this month of June 2026, analysts from the banking entity JPMorgan pointed out a similar scenario, suggesting that the tech firm needs to rebuild its U.S. dollar reserves after recording a symbolic sale of 32 Bitcoins. Although this transaction was considered a minor move focused on demonstrating flexibility to preferred holders, the banking institution’s report detailed that the action generated nervousness and anxiety in the financial markets.