Cryptoquant Urges Strategy to Pause Bitcoin Buys as Dividend Coverage Falls to 14 Months, STRC Below Par

According to Cryptoquant, Strategy Inc. (Nasdaq: MSTR) should halt bitcoin purchases and prioritize rebuilding cash reserves in 2026, as the company's dividend coverage has collapsed from over seven years at the start of the year to just 14 months. Annual dividend obligations have surged to approximately $1.2 billion from about $300 million as Strategy issued more STRC preferred stock to fund bitcoin acquisitions, while cash reserves dropped 38% since early 2026.

Strategy's STRC preferred shares have remained stuck below their $100 par value, even dipping below $90 at times, signaling investor concerns about the structure's sustainability. Cryptoquant Head of Research Julio Moreno estimated the company would need roughly $2.8 billion in cash reserves to restore 24 months of dividend coverage, nearly double its current level. The strain reflects a widening gap between Strategy's bitcoin accumulation strategy and its mounting cash obligations.