Strategy should halt its Bitcoin purchases and rebuild its cash reserves in US dollars following a sharp decline in dividend coverage for STRC, according to analysts at CryptoQuant.

Overstretched: Strategy Needs To Stop Buying Bitcoin, Rebuild Its Cash Reserve, And Get More Strategic About Timinghttps://t.co/efZhSOuG7a

— Julio Moreno (@jjcmoreno) June 23, 2026

Julio Moreno, head of research at the company, attributed the drop in STRC below $100 primarily to deteriorating fundamentals at Strategy, rather than just potential liquidations of leveraged positions.

Reserves Dwindling, Obligations Rising

Since the beginning of 2026, Strategy's cash reserves in US dollars have decreased by 38%. During the same period, annual dividend obligations have nearly quadrupled, rising from about $300 million to $1.2 billion. The yield on STRC stands at 11.5%.

In this context, the coverage of dividends for STRC—the duration for which the current reserves can sustain payments—has fallen from over seven years to approximately 14 months.

A significant blow to the buffer, according to CryptoQuant, occurred in May 2026 when Strategy spent $1.5 billion to repurchase convertible bonds. Analysts believe this move further narrowed the liquidity available for servicing STRC.

Last week, STRC dropped to around $82.50—17.5% below its nominal level of $100.

Bitcoin Sale—An Expensive Scenario

Moreno believes that attempting to quickly restore reserves by selling Bitcoin would "kill" shareholder value: Strategy has an unrealized loss of $10.6 billion. All coins purchased since 2024 are in the red. The company holds 847,363 BTC.

However, CryptoQuant estimates that a forced sell-off is unlikely. Strategy is not obligated to liquidate crypto assets to support STRC and can utilize other tools.

CryptoQuant's Recommendations

According to analysts, to return STRC to a more comfortable level, Strategy's cash reserves need to grow to approximately $2.8 billion—enough for 24 months of dividend coverage. In mid-June, the company reported cash reserves of $1.1 billion.

CryptoQuant prioritizes a pause in Bitcoin purchases and the rebuilding of dollar reserves. After this, analysts suggest that Strategy should adopt a more systematic approach to new acquisitions, rather than increasing its position each time it raises capital.

CryptoQuant also reminded that STRC dividends are cumulative, meaning missed payments do not disappear and will need to be compensated later. Due to this, analysts believe that Strategy is unlikely to suspend them.

As a reminder, in June, the founder of Strategy presented a five-level model of the Bitcoin economy.

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