{"id":74486,"date":"2026-06-24T12:29:36","date_gmt":"2026-06-24T12:29:36","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/strategy-should-pause-bitcoin-buys-and-rebuild-cash-cryptoquant-warns-as-strc-stays-below-par\/"},"modified":"2026-06-24T12:29:36","modified_gmt":"2026-06-24T12:29:36","slug":"strategy-should-pause-bitcoin-buys-and-rebuild-cash-cryptoquant-warns-as-strc-stays-below-par","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/strategy-should-pause-bitcoin-buys-and-rebuild-cash-cryptoquant-warns-as-strc-stays-below-par\/","title":{"rendered":"Strategy Should Pause Bitcoin Buys and Rebuild Cash, Cryptoquant Warns as STRC Stays Below Par"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><span style=\"font-weight:400\"><\/p>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Cryptoquant said Strategy\u2019s dividend coverage fell from 7-plus years to 14 months, urging a pause on bitcoin buys.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Strategy\u2019s cash reserves dropped 38% in 2026 as annual dividend obligations climbed to about $1.2 billion.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">STRC preferred shares remain stuck below their $100 par value, signaling investor caution toward the firm.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><\/span><\/p>\n<h2><span style=\"font-weight:400\">A Collapse in Dividend Coverage<\/span><\/h2>\n<p><span style=\"font-weight:400\">Strategy Inc. (Nasdaq: MSTR) should pause its <span>bitcoin<\/span> accumulation and prioritize rebuilding cash reserves, <\/span><span style=\"font-weight:400\">according to Cryptoquant<\/span><span style=\"font-weight:400\">, the onchain data firm whose research has tracked the company\u2019s balance sheet closely. The warning followed a sharp deterioration in the metrics that support the firm\u2019s preferred-stock dividends.<\/span><\/p>\n<figure id=\"attachment_825772\" aria-describedby=\"caption-attachment-825772\" style=\"width:1624px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-825772\" class=\"wp-caption-text\">Image source: Cryptoquant<\/figcaption><\/figure>\n<p><span style=\"font-weight:400\">Cryptoquant Head of Research Julio Moreno said the company\u2019s dividend coverage has fallen from more than seven years at the start of 2026 to just 14 months. Over the same stretch, annual dividend obligations have climbed from about $300 million to roughly $1.2 billion as the firm issued more STRC preferred stock to fund <span>bitcoin<\/span> purchases. He further added: <\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight:400\">\u201cAs Strategy continues issuing STRC preferred stock to fund <span>bitcoin<\/span> purchases, its annualized dividend obligations have risen sharply while its cash buffer has thinned.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight:400\">The deterioration was compounded by capital decisions with Moreno noting that Strategy recently repurchased $1.5 billion of its 0% convertible senior notes due in 2029, a move that reduced the cash available to support those growing dividend payments.<\/span><\/p>\n<h2><span style=\"font-weight:400\">STRC Stuck Below Par<\/span><\/h2>\n<p><span style=\"font-weight:400\">The strain has been visible in the market price of the preferred shares themselves. Strategy\u2019s STRC, a bitcoin-backed preferred stock, has struggled to return to its $100 par value, even slipping <\/span><span style=\"font-weight:400\">below $90<\/span><span style=\"font-weight:400\"> at points, as investors reassessed the instrument\u2019s risk.<\/span><\/p>\n<p><span style=\"font-weight:400\">A <span>bitcoin<\/span> rebound has not fixed the problem, as reporting from journalist <\/span><span style=\"font-weight:400\">Laura Shin<\/span><span style=\"font-weight:400\"> noted that STRC could not find its way back to par even as the company moved to a bi-monthly dividend cycle and added $300 million to bolster the structure, suggesting the discount is reflective of a deeper concern than short-term price swings.<\/span><\/p>\n<figure id=\"attachment_825773\" aria-describedby=\"caption-attachment-825773\" style=\"width:912px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-825773\" src=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/06\/strategy-should-pause-bitcoin-buys-and-rebuild-cash-cryptoquant-warns-as-strc-stays-below-par2_nwmk.jpg\" alt=\"Tweet from Laura Shin discussing Strategy's dividend woes.\" width=\"912\" height=\"423\" srcset=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/06\/strategy-should-pause-bitcoin-buys-and-rebuild-cash-cryptoquant-warns-as-strc-stays-below-par2_nwmk-300x139.jpg 300w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/06\/strategy-should-pause-bitcoin-buys-and-rebuild-cash-cryptoquant-warns-as-strc-stays-below-par2_nwmk-768x356.jpg 768w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/06\/strategy-should-pause-bitcoin-buys-and-rebuild-cash-cryptoquant-warns-as-strc-stays-below-par2_nwmk.jpg 912w\" sizes=\"auto, (max-width: 912px) 100vw, 912px\"\/><figcaption id=\"caption-attachment-825773\" class=\"wp-caption-text\">Image source: X<\/figcaption><\/figure>\n<p><span style=\"font-weight:400\"> <span>Bitcoin.com<\/span> News had reported last week that Cryptoquant flagged the risk that <\/span><a href=\"https:\/\/news.bitcoin.com\/bitcoin-boredom-risk-saylor-strc-ki-young-ju\/\"><span style=\"font-weight:400\">prolonged calm<\/span><\/a><span style=\"font-weight:400\"> in <span>bitcoin<\/span>\u2019s price could itself sink STRC, a scenario in which the preferred stock weakens not on a crash but on a lack of upside momentum.<\/span><\/p>\n<h2><span style=\"font-weight:400\">What Strategy Would Need<\/span><\/h2>\n<p><span style=\"font-weight:400\">At the current annual dividend burden of about $1.2 billion, Moreno estimated Strategy would need roughly $2.8 billion in cash reserves to restore 24 months of dividend coverage, close to double its present level. However, t<\/span><span style=\"font-weight:400\">he firm\u2019s cash position has been moving in the wrong direction as reserves have fallen by 38% since the start of 2026, even as dividend obligations have multiplied, leaving a widening mismatch between what Strategy owes and what it holds in liquid funds.<\/span><\/p>\n<p><span style=\"font-weight:400\">For a company that has built its identity on relentless <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> accumulation, the recommendation to pause buying cuts against its core playbook. In recent weeks, Michael Saylor has pushed back on <a href=\"http:\/\/www.bitcoin.com\/get-started\/bull-market-vs-bear-market\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bearish<\/a> narratives, arguing the firm <\/span><a href=\"https:\/\/news.bitcoin.com\/michael-saylors-pivot-blackrocks-new-etp-and-more-week-in-review\/\"><span style=\"font-weight:400\">may sell bitcoin<\/span><\/a><span style=\"font-weight:400\"> if needed while insisting its strategy keeps working.<\/span><\/p>\n<p>That said, t<span style=\"font-weight:400\">he immediate question is whether Strategy adjusts course given a pause in purchases and a rebuild toward the roughly $2.8 billion Cryptoquant cites would ease dividend-coverage concerns, but it would also mark a notable shift for a company synonymous with buying <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> at every opportunity.<\/span><\/p>\n<p><span style=\"font-weight:400\">Until coverage strengthens and the preferred stock recovers, the gap between Strategy\u2019s <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> ambitions and its cash obligations is likely to remain a central question hanging over the firm.<\/span><\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/strategy-cryptoquant-strc-dividend-coverage-2026\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Cryptoquant said Strategy\u2019s dividend coverage fell from 7-plus years to 14 months, urging a pause on bitcoin buys. Strategy\u2019s cash reserves dropped 38% in 2026 as annual dividend obligations climbed to about $1.2 billion. STRC preferred shares remain stuck below their $100 par value, signaling investor [&hellip;]<\/p>\n","protected":false},"author":3947362404,"featured_media":74487,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74486"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362404"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=74486"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/74487"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=74486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=74486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=74486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}