WuBlockchain
CryptoQuant Head of Research Julio Moreno is calling on Strategy to pause Bitcoin accumulation and focus on rebuilding cash reserves, warning that the company's preferred-stock-funded treasury model is straining under its own dividend load.
Strategy's annualized dividend obligations have climbed from roughly $300 million at the start of the year to about $1.2 billion as it keeps issuing STRC preferred stock to fund BTC purchases. Over the same window, cash reserves are down 38%. The result: STRC dividend coverage has collapsed from more than seven years to about 14 months.
Why it matters
The preferred-stock flywheel only works while issuance outpaces the carry cost of the dividends attached to it. With coverage now sitting at little more than a year of run-rate obligations, Strategy has meaningfully less headroom before it has to choose between slowing buys, tapping new equity, or selling BTC to service the preferred.
Market impact
Moreno also suggested Strategy consider modest BTC sales into future bull markets to take gains, trim leverage, and refill the cash buffer. For the broader market, the framing matters: the largest corporate BTC holder moving from accumulation-only to optional seller would reset the assumption that the bid below price is structural and unconditional.
Frequently asked questions
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Why is CryptoQuant telling Strategy to pause Bitcoin accumulation?
Head of Research Julio Moreno argued that Strategy's preferred-stock-funded BTC purchases have pushed annualized dividend obligations to roughly $1.2B while cash reserves fell 38%, leaving STRC dividend coverage at about 14 months.
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How much have Strategy's dividend obligations grown in 2025?
Annualized dividend obligations on the STRC preferred have risen from roughly $300M at the start of the year to about $1.2B, driven by continued preferred-stock issuance to fund Bitcoin buys.
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What is STRC dividend coverage and why does it matter?
Dividend coverage measures how long a company's cash and income can service its dividend obligations. Coverage on STRC has fallen from more than seven years to about 14 months, leaving little headroom.
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Did Moreno suggest Strategy should ever sell its Bitcoin?
He suggested Strategy moderately sell part of its BTC holdings during future bull markets to realize gains, reduce leverage, and replenish cash reserves.
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What would it mean for the broader market if Strategy started selling Bitcoin?
A shift from accumulation-only to occasional seller would weaken the assumption that the largest corporate BTC holder provides a structural, unconditional bid below market price.
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