Analysts recommend that Strategy take a pause in bitcoin purchases to strengthen reserves.
I have carefully examined the current financial position of Strategy, and the conclusions reached by leading analysts deserve the closest attention. In my view, the situation with dividend coverage on STRC shares indeed requires an immediate strategic correction. The company should temporarily halt its aggressive bitcoin purchases and focus on rebuilding its dollar cash reserve.
CryptoQuant's head of research, Julio Moreno, rightly notes that the decline in STRC quotes below the $100 mark is linked not only to margin position liquidations but also to a fundamental deterioration in Strategy's own metrics.
Reserves running low, liabilities growing
Since the beginning of 2026, Strategy's dollar cash reserve has decreased by 38%. Over the same period, annual dividend obligations have nearly quadrupled—from $300 million to $1.2 billion. With STRC's current yield at 11.5%, dividend coverage has fallen from over seven years to approximately 14 months. This is a critical signal.
May 2026 dealt a particularly painful blow to liquidity, when the company spent $1.5 billion to repurchase its own convertible bonds. Last week, STRC dropped to $82.50—17.5% below par—which only confirms my concerns.
Selling bitcoin is a dead end
Rapidly restoring the reserve by selling bitcoin is a scenario that, in my opinion, would be detrimental to shareholder value. Strategy's unrealized loss on its cryptocurrency position stands at $10.6 billion. All coins purchased since 2024 are in the red. A forced sale of the 847,363 BTC held by the company would only worsen the situation.
However, as analysts rightly note, such a scenario is unlikely. Strategy is not obligated to sell bitcoin to support STRC and can use alternative instruments.
What to do next?
To bring STRC back to a comfortable level, the company's cash reserve needs to be increased to approximately $2.8 billion—this would ensure 24 months of dividend coverage. As of mid-June, Strategy reported $1.1 billion in accounts. The priority is a complete halt to bitcoin purchases and the restoration of the dollar buffer. Only after that should the company move to a systematic, rather than impulsive, buildup of its cryptocurrency position.
It is important to remember: STRC dividends are cumulative. Missed payments are not canceled; they must be compensated with interest. Therefore, suspending payments is an extremely unlikely scenario.
My expert assessment: The strategy of uncompromising bitcoin purchases funded by debt has shown its vulnerability in a tightening monetary policy environment. Now is a time not for heroism, but for financial hygiene at Strategy. A pause in purchases is not a sign of weakness, but a sign of maturity and pragmatism that the market expects from an issuer of this scale.