- Strategy’s cash reserves fell 38% in 2026 as STRC dividend obligations climbed to $1.2B.
- Bitcoin holdings show $10.6B unrealized losses across 2024 to 2026 purchase cycles.
- Dividend coverage drops to 14 months as analysts warn liquidity pressure is tightening.
A new report from onchain analytics firm CryptoQuant has urged Strategy, led by Michael Saylor, to temporarily halt its Bitcoin acquisitions and prioritize rebuilding cash reserves, citing rising dividend obligations, declining liquidity, and growing unrealized losses on its Bitcoin holdings.
The warning comes as market conditions weigh on both the company’s preferred stock and its balance sheet structure, raising questions about its short-term financial flexibility.
Cash Reserves and Dividend Obligations Under Strain
According to CryptoQuant’s research head, Julio Moreno, Strategy’s cash reserves have declined by 38% since the beginning of 2026, while annualized dividend obligations tied to STRC have surged from approximately $300 million to about $1.2 billion within the same period. The increase is linked to expanded issuance of STRC used to support bitcoin purchases.
Moreno noted that Strategy’s recent repurchase of $1.5 billion in 0% convertible senior notes due in 2029 further reduced its available cash buffer. At the same time, STRC fell to $82.50 last week, marking a 17.5% discount to its $100 par value. This follows the latest acquisition, in which Strategy announced the addition of 520 BTC for about $35 million.
The report estimates that Strategy’s dividend coverage has fallen from more than seven years at the start of 2026 to roughly 14 months. To restore a 24-month coverage level, Moreno calculated that the company would require about $2.8 billion in cash reserves, nearly double current levels.
Bitcoin Exposure and Financing Constraints
CryptoQuant also highlighted that Strategy holds approximately $10.6 billion in unrealized Bitcoin losses, with purchases made during 2024, 2025, and 2026 all currently below cost basis. Moreno stated that selling Bitcoin to rebuild reserves would lock in those losses and impact shareholder value.
While Strategy is not required to liquidate Bitcoin to support STRC, the report noted that alternatives include maintaining or increasing dividend yields or issuing additional MSTR equity, both of which are already being used.
Moreno added that the firm faces a narrowing set of options, stating that rebuilding cash reserves remains central to stabilizing market confidence in STRC.
Market Structure Concerns Highlighted by Analysts
Separately, commentary from Ali Charts on X noted technical pressure in Strategy’s broader stock structure, citing a long-term breakdown pattern on the MSRT weekly chart. The analysis outlined a chain of support levels extending down to $28.45, alongside a projected downtrend following a head-and-shoulders formation.
Ali Charts also compared STRC’s adjustable dividend structure to traditional fixed-income instruments, noting that rising yields during periods of Bitcoin weakness could intensify cash outflows.
Related: The Math That Broke Strategy’s STRC: More Shares, Higher Cash Burn
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