Strategy · Bitcoin · Federal Reserve (FED) · Decrypt
'Stop Buying Bitcoin': Strategy Needs More Cash Fast, Analyst Confirms as STRC Hits New Low
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Ballooning costs associated with Strategy’s flagship preferred stock have left the Bitcoin -buying firm in a bind—and there’s only one real solution, as CryptoQuant argued on Tuesday.
Key facts
- On Wednesday, the product that currently offers an 11.5% annual dividend slipped to a record low of $79.85, according to Yahoo Finance
- The firm’s stock price tumbled more than 10% to a 27-month low of $92.28
- As cash reserves fell while dividend obligations rose, STRC dividend coverage collapsed from more than 7 years at the start of 2026 to 14 months today,” Moreno highlighted
- Investors were spooked this month when the company announced that it had sold 32 Bitcoin for $2.5 million
Summary
Strategy should immediately end its Bitcoin-buying spree and focus purely on shoring up cash, according to CryptoQuant Analyst Julio Moreno. He argued that the company's lack of available cash is compounding pressure on Stretch (STRC), which fell to record lows on Wednesday. Strategy’s so-called USD Reserve should be rebuilt to provide the company with at least 24 months of dividend coverage, Moreno advised. If the world’s largest corporate holder of Bitcoin wants to take pressure off Stretch (STRC), it needs to stop purchasing the digital asset immediately and focus purely on shoring up cash, the analytics firm’s Head of Research, Julio Moreno, shared in a note.