CryptoQuant Warns Strategy Inc.: Stop Buying Bitcoin and Rebuild Cash Reserves

On June 23, 2026, CryptoQuant's head of research, Julio Moreno, published a report urging Strategy Inc. (formerly MicroStrategy) to immediately halt Bitcoin purchases and prioritize rebuilding its US dollar cash reserves . The recommendation lands as the world's largest corporate Bitcoin holder confronts a deepening cash crunch, soaring dividend obligations, and over $10 billion in unrealized losses on its digital asset treasury.

The Core Recommendation: A Strategic Pause

Moreno argued that Strategy's financial position had become dangerously overstretched. In his report, he called for a temporary halt to Bitcoin acquisitions until the company can restore its cash reserves and stabilize dividend coverage for STRC preferred stockholders . The recommendation extends beyond a simple pause: Moreno urged Strategy to develop a more methodical, fundamentals-based approach to timing Bitcoin purchases and proposed a framework that would allow the company to sell some Bitcoin near future cycle peaks — a significant departure from Michael Saylor's long-standing "never sell" doctrine .

The Key Financial Pressures

38% Drop in Cash Reserves

Multiple outlets confirm that Strategy's USD cash reserves fell 38% over the course of 2026 as capital was diverted to Bitcoin acquisitions . This rapid depletion of liquid assets leaves the company with reduced financial flexibility to meet operational needs or debt obligations.

Dividend Obligations Nearly Quadrupled

Moreno stated that Strategy's annualized dividend obligations on its STRC preferred stock rose from about $300 million at the start of the year to approximately $1.2 billion — roughly a 4× increase — as the company kept issuing new STRC shares to fund Bitcoin purchases . Consequently, STRC dividend coverage fell from more than seven years to just 14 months .

$10.6 Billion Unrealized Loss on Bitcoin Holdings

CryptoQuant estimated that Strategy's total unrealized Bitcoin losses stood at approximately $10.6 billion . All Bitcoin acquired in 2024, 2025, and 2026 is currently underwater. (For context, Strategy's own Q1 2026 financial report disclosed a larger $14.46 billion unrealized loss on a mark-to-market basis, reflecting a net loss of $12.54 billion for the quarter .)

Average Cost Basis Near $75,000

The estimated unrealized loss and known holdings imply an average cost well above current market prices. An April 2026 report noted Strategy's average purchase price was near $76,000–$78,000, and the portfolio only returned to breakeven when Bitcoin briefly recovered above $76,000 . At current bear-market levels, all recent vintages are underwater .

STRC Preferred Stock at Record Low of $82.53

Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) hit an all-time low of $82.53 on June 18–20, 2026, well below its $100 par value . By June 22, it had recovered slightly to ~$88.79 . The STRC's descent reflects deteriorating fundamentals rather than forced liquidations, according to Moreno .

Cash Reserve Target: ~$2.8 Billion

Moreno estimated that Strategy needs approximately $2.8 billion in cash reserves to restore confidence among STRC investors and reestablish a sustainable 24-month dividend coverage buffer — essentially double its current holdings . "Expanding cash holdings is the signal the market most needs," he wrote .

Broader Context: Strategy Already Shifting Approach

Reports indicate that for two weeks prior to Moreno's report, Strategy had already begun directing most new capital toward cash reserves rather than Bitcoin purchases, suggesting the company itself recognized the growing financial strain . Yahoo Finance described CryptoQuant's June 23 warning as arriving "two weeks late" relative to Strategy's own pivot .

Bitcoin Purchases No Longer a Clear Price Driver

Analysis indicates that in the current bear market, Strategy's large-scale BTC buys no longer function as a reliable price support or upward driver for Bitcoin, reducing the strategic value of continued accumulation .

A Turning Point for Corporate Bitcoin Strategy?

Moreno's report represents the most prominent analyst call for a halt to Strategy's aggressive Bitcoin acquisition program. While previous warnings from CryptoQuant date back to February 2026, the June 2023 analysis focuses on the company's structural financial vulnerabilities rather than simple market timing . The recommendation has amplified scrutiny on the sustainability of Saylor's Bitcoin treasury strategy and its implications for corporate crypto adoption .