Strategy (MSTR) should stop buying bitcoin $BTC$62,606.23, rebuild its cash reserve and become far more disciplined about when it buys, onchain analytics firm CryptoQuant said in a Wednesday report shared with CoinDesk.
The strain showing up in the company’s STRC preferred stock is a sign the firm has overextended itself, it added. STRC, Strategy’s flagship preferred stock, fell to about $82.50 last week, a record 17.5% below the $100 level it is designed to trade around.
A preferred stock is a class of equity that pays a set dividend, and STRC currently yields 11.5%. The slide came as bitcoin’s correction and a shrinking cash reserve hit at the same time.
A concern is the cash behind those dividends. Strategy’s U.S. dollar reserve has fallen 38% since the start of 2026, CryptoQuant said, while its annual dividend obligations have nearly quadrupled to $1.2 billion.
Dividend coverage, a measure of how long the reserve could keep funding payouts, has collapsed from more than seven years to about 14 months. A big reason was Strategy spending $1.5 billion in May to buy back its convertible notes, debt that can later convert into stock, draining the buffer that supports STRC.
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