Strategy faces fresh scrutiny over its Bitcoin buying plan as its cash position weakens. A CryptoQuant report said the company should pause BTC purchases and rebuild reserves before adding more exposure. The report linked the pressure to falling cash coverage, higher dividend needs, and a weaker STRC price.
It also argued that buying Bitcoin without a strict timing model has raised balance sheet risk during a weak market. The update placed cash management ahead of further Bitcoin accumulation and kept attention on Strategy’s balance sheet this week.
Strategy Cash Reserve Falls as Dividend Needs Rise
Strategy’s STRC dropped to $82.50 last week, a record 17.5% below its $100 par value. The move came as Bitcoin remained under pressure and Strategy’s cash reserve declined. CryptoQuant said the company repurchased $1.5 billion of its 0% Convertible Senior Notes due 2029 in May. That transaction reduced the cash buffer available for dividend payments.
The report said Strategy’s annualized dividend obligations have nearly quadrupled to $1.2 billion. At the same time, its USD cash reserve has fallen 38% since the start of 2026.
BTC Cash Reserve | Source: X
Dividend coverage has dropped from more than seven years to 14 months. CryptoQuant said Strategy needs about $2.8 billion in cash reserves to restore 24 months of coverage.
Analysts Question the Pace of BTC Purchases
The report said Strategy does not need to sell Bitcoin in the near term to defend STRC. It can raise the current 11.5% dividend yield or issue MSTR stock to show that it can keep meeting payments. However, CryptoQuant said the path back to $100 remains difficult while cash coverage stays low.
CryptoQuant also said Strategy should move away from buying Bitcoin whenever capital becomes available. It called for a model-driven purchase plan based on market conditions and company fundamentals. The firm said recent purchases during weak cycles have added unrealized losses. It is estimated that Strategy holds a $10.6 billion unrealized loss on Bitcoin, with all coins bought in 2024, 2025, and 2026 now underwater.
Bitcoin Demand Meets Heavy Selling Pressure
The market backdrop has also weakened the case for steady corporate buying. CryptoQuant data showed that Bitcoin’s realized cap grew by $467 billion over two years, while BTC price fell 1% over the same period. The report said this shows that fresh capital has mainly changed ownership rather than lifting prices. It also said continued buying may provide liquidity to holders who want to exit.
Growth Rate Difference | Source: X
The analyst views framed Strategy’s BTC buying as a liquidity sink instead of a price catalyst under current conditions. In a low-selling-pressure market, large demand can push price higher. In the current market, elevated selling pressure may only help defend the range. CryptoQuant said Bitcoin may need a deeper reset before stronger accumulation returns.
BTC Price Levels Remain Central to Market Direction
Meanwhile, Bitcoin price is at $62,500, placing BTC inside a major on-chain volume zone. More than 1.3 million BTC moved between $60,000 and $63,000, making this the largest supply cluster. This range now remains the key area for buyers to defend.
BTC URPD | Source: X
BTC has immediate support at $60,587. A daily close below this level could weaken the current setup and open the way toward $46,702. Around 150,000 BTC changed hands near that lower zone, making it the next important support area.
If Bitcoin loses $46,702, the next major on-chain floor sits at $37,867. Around 207,000 BTC moved near that level. For now, daily closes around $60,000 will decide whether buyers can hold the current range.
