CryptoQuant Urges Strategy to Halt Bitcoin Buys Amid Liquidity Risks

The warning highlights a sharp decline in Strategy’s financial cushion, with cash reserves dropping 38% throughout 2026. Annualized dividend obligations for the company’s STRC product have surged to $1.2 billion, a fourfold increase that complicates its current funding model. Analysts estimate that restoring a 24-month buffer would require an additional $2.8 billion, a sum roughly double the firm’s current liquid holdings.

Ki Young Ju, CEO of CryptoQuant, contends that Strategy’s persistent buying no longer acts as a price catalyst. Instead, he suggests the activity functions as a liquidity sink that may only be propping up existing price ranges while delaying a necessary market reset. Despite these concerns, Strategy remains the world’s largest corporate Bitcoin holder, recently adding 520 BTC to its treasury while simultaneously increasing its cash reserve by $300 million through share sales.

The debate is further complicated by the performance of STRC, which has struggled to maintain its $100 par value, recently trading significantly lower with an effective yield climbing toward 13.2%. While co-founder Michael Saylor maintains that the company’s total assets comfortably exceed its debt, the widening gap between dividend obligations and available cash has signaled a cooling sentiment among investors. As MSTR shares drift toward 52-week lows, the firm’s reliance on capital raises to fund both Bitcoin acquisition and dividend payouts faces its most significant test to date.