Michael Saylor's strategy under threat: CryptoQuant CEO demands halt to Bitcoin buying spree
The aggressive bitcoin accumulation strategy of Strategy, led by Michael Saylor, has faced harsh criticism from a leading market analyst. Ki Young Ju, founder and CEO of CryptoQuant, stated that the company's current purchases resemble "liquidity absorption" rather than a price growth driver. In his opinion, Strategy needs to immediately halt coin acquisitions, restore cash reserves, and implement a systematic approach to timing trades.
The reason for such a sharp statement was Strategy's own alarming financial indicators. According to on-chain analytics, the company's annual dividend obligations have nearly quadrupled to $1.2 billion. Meanwhile, cash reserves have conversely decreased by 38% in 2026. Dividend coverage, which was previously calculated at over seven years, has collapsed to just 14 months. This signals serious financial vulnerability.
Why aren't purchases moving the price?
Ki Young Ju emphasizes that under conditions of low selling pressure, demand from Strategy could indeed significantly influence the price. However, the current market situation is radically different: seller pressure is clearly elevated, and Strategy's purchases are merely holding the price within a range, preventing it from rising.
To support his words, the head of CryptoQuant cited data on bitcoin's realized capitalization. Over the past two years, it has grown by $467 billion, but the price has even decreased by 1%. This clearly demonstrates that hundreds of billions of dollars in inflows only lead to a change in coin ownership, not to price appreciation. Moreover, continuous purchases prevent the market from undergoing a "deeper cleansing drawdown," which would allow more holders to lock in profits and give the market momentum for new growth.
Typically, as the analyst reminds, bitcoin cycles reset through crashes, capitulation, and the exit of weak holders. But the current cycle is unique: bitcoin has been moving in a wide sideways range for almost two years, lacking the strength for a new bull market and not weakening enough for a true capitulation.
Three tips for Saylor
Ki Young Ju directly addressed Michael Saylor with three specific suggestions:
First: immediately halt bitcoin purchases until cash reserves and dividend coverage are restored. The company's financial stability is a priority.
Second: implement a systematic, model-based purchasing scheme. The phrase "Strategy always buys at the local top" has already become a market meme. Buying whenever there is free capital is not a strategy, but an impulsive decision.
Third: develop a disciplined selling scheme for the next bull market. Partial sales near cycle peaks do not mean abandoning bitcoin. This will reduce the company's debt burden, lock in value for shareholders, and create a reserve of free liquidity for re-accumulation at lower prices. This is not trading, but risk management.
My expert opinion: Ki Young Ju's position is not just criticism, but a timely warning about systemic risks. The "buy and hold" strategy using borrowed funds worked brilliantly in a rising market, but in conditions of sideways movement and high volatility, it turns into a zero-sum game. Saylor should heed these tips if he wants to preserve the company as an institutional player, rather than a speculative fund. The market does not forgive a lack of discipline, and the current cycle is the best proof of that.