Bitcoin accumulation has long been the cornerstone of Michael Saylor’s Strategy. The company built its identity around buying and holding Bitcoin regardless of market conditions. But new analysis from CryptoQuant suggests that approach may need a temporary pause.
According to CryptoQuant Head of Research Julio Moreno, Strategy’s financial position has become more strained in recent months. The company has continued issuing STRC preferred stock to fund Bitcoin purchases. As a result, annual dividend obligations have surged from roughly $300 million at the start of 2026 to about $1.2 billion today.
At the same time, cash reserves have fallen by 38%. Strategy also recently spent $1.5 billion to repurchase convertible senior notes due in 2029. These moves have reduced the company’s financial cushion while increasing future obligations.
Bitcoin Accumulation and Dividend Pressure
The growing dividend burden has created a new challenge. Moreno noted that STRC dividend coverage has fallen sharply from more than seven years at the beginning of the year to only 14 months today.
To restore two years of dividend coverage, Strategy would need approximately $2.8 billion in cash reserves. That figure is nearly double its current cash position.
While the company can suspend dividend payments, the dividends are cumulative and must eventually be paid. Moreno believes such a move would damage investor confidence and hurt the company’s credibility.
Meanwhile, Strategy is sitting on an estimated unrealized Bitcoin loss of $10.6 billion. Most Bitcoin acquired during 2024, 2025, and 2026 remains underwater, making large-scale sales unattractive at current prices.
Also Read: Bitcoin Selling Activity’s Drastic Drop to Massive 962 BTC
Bitcoin Accumulation Needs a More Systematic Approach
Moreno’s recommendation is straightforward. Strategy should temporarily halt Bitcoin purchases until its cash reserves and dividend coverage improve.
He also argues that the company needs a more disciplined acquisition model. Critics have often joked that Strategy buys Bitcoin near market tops. Moreno believes a data-driven framework could help avoid that perception.
Looking ahead, he suggests selling portions of Bitcoin holdings during future bull markets. Realizing gains during strong market cycles could reduce leverage, rebuild cash reserves, and create flexibility for future opportunities.
For now, the debate highlights a key question: should aggressive Bitcoin accumulation remain the priority, or is financial stability the more urgent goal?
Also Read: Bitcoin Price Forecast Turns Ultra Bullish With $175K–$240K Cycle Projection
