Overview
- CryptoQuant recommended pausing systematic Bitcoin purchases and rebuilding Strategy’s cash reserve in a report published June 23 to shore up its STRC preferred stock.
- STRC has traded deep below its $100 par, hitting about $82.50 and later near $79.85, which raised its effective yield to double‑digit levels and signaled market concern about dividend coverage.
- Strategy has slowed accumulation while buying 520 BTC and routing $300 million of fresh proceeds into its USD reserve to lift the balance to about $1.4 billion.
- Analysts estimate Strategy’s annualized STRC dividend obligations are about $1.2 billion and CryptoQuant calculates the company needs roughly $2.8 billion in cash to restore roughly 24 months of coverage, making large bitcoin sales unattractive because they would lock in an estimated $10.6 billion of unrealized losses.
- The debate now centers on whether Strategy will keep buying bitcoin and use equity or dividend changes to cope or instead prioritize cash rebuilding; the outcome will affect preferred holders’ payouts, common shareholders’ dilution risk, and a major source of institutional Bitcoin demand.