The basic approach adopted by Strategy, led by Michael Saylor, for a long time was to buy and hold Bitcoin regardless of market conditions. However, the new assessment shared by CryptoQuant indicated that the company may have to slow down this strategy, at least temporarily. Strategy is known as a company that builds its business model largely on Bitcoin accumulation.
Cash balance and dividend burden came to the fore
According to Julio Moreno, Head of Research at CryptoQuant, Strategy’s finances have come under more pressure in recent months. The company continued its issuance of STRC preferred shares to finance its Bitcoin purchases. During this period, annual dividend obligations have increased from approximately $300 million at the beginning of 2026 to $1.2 billion today.
It was reported that cash reserves decreased by 38% in the same period. It was stated that Strategy also recently spent $1.5 billion to buy back its convertible senior bonds due 2029. These steps are considered to increase the company’s future liabilities while weakening its financial buffer.
According to Moreno’s assessment, the coverage period for STRC dividends has decreased from over seven years at the beginning of the year to 14 months today.
Moreno noted that Strategy needs approximately $2.8 billion in cash reserves in order to create a two-year safety area for dividend payments. This amount corresponds to almost twice the company’s current cash position.
Bitcoin loss and sell option are discussed
Although the company has the option of stopping dividend payments, it was emphasized that these payments are cumulative, meaning they must be paid later. Moreno expressed the opinion that such a decision could damage investor confidence and damage the company’s credibility in the market.
On the other hand, it is estimated that Strategy carries unrealized Bitcoin losses of approximately $10.6 billion. It was stated that a significant portion of the Bitcoins purchased in the 2024, 2025 and 2026 periods are still below the cost, so large-scale sales do not seem attractive at current price levels.
Moreno argues that it would be healthier for Strategy to temporarily halt Bitcoin purchases until its cash reserves and dividend-covering capacity strengthen.
A more systematic procurement model was suggested
According to Moreno, the company needs to move towards a more disciplined and data-based Bitcoin purchasing model. It is thought that the criticisms expressed from time to time in the market that Strategy collects Bitcoin from levels close to price peaks can be reduced in this way.
Going forward, it is recommended to sell some of Bitcoin assets during strong bull periods. It is stated that such an approach can reduce debt with the earnings obtained, strengthen cash reserves and provide the company with more leeway for opportunities that may arise in the future.
The focus of the debate now lies on the following question: Should aggressive Bitcoin accumulation be the priority for Strategy, or has financial stability in the short term become a more urgent need?
