The aggressive strategy of Saylor is under threat: the head of CryptoQuant calls on Strategy to pause Bitcoin purchases
The Bitcoin market is experiencing a unique period of stagnation, and in my firm belief, one of the key reasons for this is the actions of the company Strategy (formerly MicroStrategy). CryptoQuant founder and CEO Ki Young Ju has sharply criticized Michael Saylor's current strategy, calling his company not a driver of price growth, but a "liquidity sponge." I fully share this view, and here is why.
Why have Strategy's purchases stopped working?
Analysis conducted by my team confirms: Strategy's aggressive purchases are no longer pushing the price up, but merely holding it in a narrow range. Data on Bitcoin's realized capitalization over the past two years is telling: it grew by $467 billion, yet the price fell by 1%. This means that hundreds of billions of dollars in inflows are simply changing coin owners without creating upward momentum. Amid high seller pressure, such purchases only prolong a "sluggish sideways movement," preventing the market from undergoing a necessary cleansing drawdown.
Three tips from an expert: what should Saylor do?
Ki Young Ju directly addressed Michael Saylor with three specific proposals, which, in my opinion, sound more than reasonable.
First: immediately stop buying Bitcoin until cash reserves and dividend coverage are restored. The company's financial position is alarming: annual dividend obligations have nearly quadrupled to $1.2 billion, and cash reserves by 2026 have shrunk by 38%. Dividend coverage has collapsed from over seven years to just 14 months.
Second: develop a systematic, model-based purchasing scheme. The phrase "Strategy always buys at the local top" has become a market meme, and this is not a strategy but a lack of discipline. Buying whenever there is free capital is not asset management, but chaos.
Third: implement a disciplined sales scheme for the next bull market. Partial sales near cycle peaks do not mean abandoning Bitcoin. They will reduce debt burden, lock in value for shareholders, and create a liquidity reserve for re-accumulation at lower prices. This is not trading, but sound risk management.
My opinion: The cryptocurrency market is ripe for a paradigm shift. The current cycle is stuck in a sideways trend precisely because major players like Strategy act on inertia rather than calculation. If Saylor does not heed these tips, the company risks not only its reputation but also its financial stability. Bitcoin is an asset that requires strategy, not just faith.