CryptoQuant Warns Strategy Should Pause Bitcoin Purchases
Strategy is the world’s largest publicly traded corporate holder of Bitcoin. It has long financed its purchases through debt and preferred-stock issuance while paying preferred dividends in cash. When Bitcoin prices fall and access to funding weakens, its vast holdings could strain liquidity, making dividend coverage an important gauge of financial risk.
CryptoQuant recently said Strategy’s cash reserves had fallen 38%, slashing its preferred-dividend coverage from seven years to 14 months. With unrealized Bitcoin losses reaching $10.6 billion, it recommended that the company pause purchases and replenish its cash. Although Strategy began rebuilding its cash reserves two weeks before the warning was issued, its structural risks continue to draw market attention.
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The history behind this eventStrategy Dominates Corporate Bitcoin Treasury Buying
Michael Saylor-led Strategy has fueled the digital asset treasury, or DAT, model by issuing common and preferred stock to buy Bitcoin. Several companies followed suit when Bitcoin traded above $110,000 in July and August 2025. After the cryptocurrency fell below $70,000, however, high-cost holdings came under pressure and buying became concentrated in a single company, increasing market-liquidity and balance-sheet risks.
CryptoQuant said on March 26, 2026, that Strategy had bought about 45,000 BTC over the previous 30 days, while other companies purchased only about 1,000 BTC. Strategy held 76% of the Bitcoin in corporate treasuries. Data as of April 6 showed that it had added 46,233 BTC since March 2, nearly three times the 16,200 BTC in new supply over the same period. The company also raised $102.6 million through STRC to help fund more than $330 million in Bitcoin purchases.
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