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\n\t\t\t\t\t\t\t\t\tMichael Saylor needs to stop buying Bitcoin and rebuild cash reserves for Strategy, according to CryptoQuant.\u00a0\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Strategy\u2019s perpetual preferred stock Stretch (STRC) is under serious financial stress due to two simultaneous pressures, reported onchain analytics firm CryptoQuant on Tuesday.<\/p>\n
The Bitcoin bear market means that all BTC purchased between 2024 and 2026 is underwater, with $10.6 billion in unrealized losses, and cash reserves are depleted, down 38% since early 2026 after a $1.5 billion convertible senior note repurchase in May.<\/p>\n
Strategy pays dividends on its Stretch product, which offers an 11.5% yield and is designed to trade at $100. However, it fell to a record low of $82.5 last week, a record 17.5% below par.<\/p>\n
At current prices of $87.4, the current effective yield is 13.2%, according<\/a> to the STRC tracker.<\/p>\n The core problem is that Strategy\u2019s dividend obligations have nearly quadrupled to $1.2 billion per year, while the cash to cover them has shrunk, collapsing dividend coverage from more than seven years to just 14 months.<\/p>\n Last week, Strategy claimed<\/a> that it had 32 years of dividend coverage using its $55 billion Bitcoin stash, but the argument was flawed.<\/p>\n At current dividend obligations, restoring just 24 months of coverage would require a cash reserve of approximately $2.8 billion, roughly twice what Strategy holds today, said CryptoQuant.<\/p>\n STRC issuance has been an effective capital-raising mechanism for Bitcoin purchases, but the rapid growth of dividend obligations has become a structural liability that could weigh on its sustainability.<\/p>\n \u201cThe market appears to be pricing this risk; the STRC price decline reflects not only near-term cash reserve weakness but also long-term concerns about the company\u2019s ability to service its growing dividend burden.\u201d<\/p>\n<\/blockquote>\n They added that any forced Bitcoin sale at current prices would crystallize its unrealized losses scale, destroy shareholder value, and potentially catalyze another leg down for BTC spot markets.<\/p>\n CryptoQuant recommended that the company \u201cpause Bitcoin purchases until cash reserves and dividend coverage are restored.\u201d<\/p>\n Strategy\u2019s annualized dividend obligations have nearly quadrupled to $1.2B, while its cash reserve has fallen 38% in 2026.<\/p>\n Dividend coverage collapsed from 7+ years to just 14 months.<\/p>\n The company needs to stop buying Bitcoin and rebuild cash. pic.twitter.com\/TR0oaAnT5k<\/a><\/p>\n \u2014 CryptoQuant.com (@cryptoquant_com) June 23, 2026<\/a><\/p>\n<\/blockquote>\n Saylor seems adamant, however, with the firm\u2019s latest purchase<\/a> of 520 BTC for $35 million while increasing its USD reserve by $300 million to $1.4 billion on Monday.<\/p>\n The move gave some brief respite to STRC, which returned to $88 on Tuesday, but it remains in trouble, trading below par.<\/p>\n Company stock (MSTR) has also taken a beating, tanking a further 5% on Tuesday to end the day trading at $103.84, its lowest level since early 2024, according<\/a> to Google Finance.<\/p>\n The move coincided with another Bitcoin dip as the asset failed to hold $64,000 and fell to $62,000 on Tuesday. BTC reclaimed $63,000 during the Asian trading session on Wednesday, but had already started to fall back from that level at the time of writing.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n <\/p><\/div>\nStop Buying Bitcoin<\/h2>\n
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STRC, MSTR, and BTC Declining<\/h2>\n
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