Svmuu News: CryptoQuant states that Michael Saylor’s Strategy should currently suspend further purchases of Bitcoin and instead prioritize rebuilding its cash reserves, as its dividend obligations have risen significantly, its cash reserves have fallen sharply, and its unrealized losses on Bitcoin have widened.
Julio Moreno, Head of Research at CryptoQuant, noted that Strategy’s preferred stock, STRC, fell to $82.50 last week—17.5% below its $100 par value—marking its largest discount on record. This pressure stems from the bear market environment at Bitcoin and the company’s diminished cash buffer.
The report states that Strategy recently repurchased $1.5 billion in 0% convertible senior notes maturing in 2029, further reducing the cash buffer available to support STRC dividend payments. Meanwhile, the company’s cash reserves have declined by 38% since early 2026.
On the other hand, as Strategy has issued more STRC to finance the purchase of Bitcoin, its annualized dividend obligation has risen from approximately $300 million at the beginning of the year to about $1.2 billion currently—a nearly fourfold increase in less than six months.CryptoQuant believes the company should be more selective in its purchases of Bitcoin rather than continuing to accumulate holdings indiscriminately amid mounting cash pressures.