Strategy should halt its Bitcoin purchases and rebuild its cash reserves in USD following a sharp decline in STRC dividend coverage, according to CryptoQuant analysts.
Overstretched: Strategy Needs To Stop Buying Bitcoin, Rebuild Its Cash Reserve, And Get More Strategic About Timinghttps://t.co/efZhSOuG7a
— Julio Moreno (@jjcmoreno) June 23, 2026
Julio Moreno, head of research, attributed the drop in STRC below $100 primarily to deteriorating fundamentals at Strategy, rather than potential leveraged position liquidations.
Reserves Dwindle, Obligations Grow
Since the start of 2026, Strategy’s cash reserves in USD have decreased by 38%. During the same period, annual dividend obligations have nearly quadrupled from approximately $300 million to $1.2 billion. STRC’s yield stands at 11.5%.
Against this backdrop, STRC dividend coverage—the period for which current reserves can cover payouts—has fallen from over seven years to about 14 months.
In May 2026, Strategy spent $1.5 billion on repurchasing convertible bonds, which CryptoQuant analysts believe further reduced the liquidity buffer that could have been used to service STRC.
Last week, STRC dropped to approximately $82.50, 17.5% below its nominal level of $100.
Selling Bitcoin: A Costly Scenario
Moreno believes that attempting to quickly restore reserves by selling Bitcoin would “destroy” shareholder value, as Strategy has an unrealized loss of $10.6 billion. All coins purchased since 2024 are at a loss. The company holds 847,363 BTC.
However, a forced sale is unlikely, according to CryptoQuant. Strategy is not obligated to liquidate crypto assets to support STRC and can use other instruments.
CryptoQuant’s Recommendations
Analysts estimate that to return STRC to a more comfortable level, Strategy’s cash reserves should increase to approximately $2.8 billion, covering 24 months of dividends. In mid-June, the company reported cash reserves of $1.1 billion.
CryptoQuant prioritizes pausing Bitcoin purchases and rebuilding the USD reserve. Analysts suggest that Strategy should adopt a more systematic approach to new purchases after this, rather than increasing its position each time capital is raised.
CryptoQuant also noted that STRC dividends are cumulative, meaning missed payments do not disappear and will need to be compensated later. Therefore, analysts believe Strategy is unlikely to suspend them.
In June, Strategy’s founder introduced a five-tier Bitcoin economy model.
