Strategy Under Pressure: Analysts Demand Stop to Bitcoin Purchases Due to Liquidity Crisis
Strategy's bitcoin purchases should be suspended immediately. This is the conclusion I have reached after analyzing the issuer's current financial position. The sharp decline in dividend coverage for STRC preferred shares signals that the company has overloaded its balance sheet and risks facing serious liquidity problems.
Since the beginning of 2026, Strategy's U.S. dollar cash reserve has decreased by 38%. Meanwhile, annual dividend obligations have nearly quadrupled — from $300 million to $1.2 billion. STRC's yield stands at 11.5%, which is high in itself, but the current cash reserve covers payments for only 14 months, whereas not long ago this period exceeded seven years.
Reserve Melts, Obligations Grow
A particular blow to the liquidity buffer came in May 2026, when Strategy spent $1.5 billion on buying back its own convertible bonds. This move further narrowed the safety margin. Last week, STRC shares fell to $82.50 — 17.5% below the nominal level of $100. This is not just market volatility; it is a direct signal of fundamental problems.
Selling Bitcoin — Too Costly a Scenario
Rapidly restoring the reserve by selling bitcoin would be a fatal mistake. Strategy currently has $10.6 billion in unrealized losses. All coins purchased since 2024 are in the red. The company holds 847,363 BTC, and a forced sell-off would destroy shareholder value. However, in my estimation, such a scenario is unlikely: Strategy is not obligated to realize crypto assets to support STRC and can use other financial instruments.
What Analysts Suggest
To bring STRC back to a comfortable level, Strategy's cash reserve would need to grow to approximately $2.8 billion — this would provide 24 months of dividend coverage. In mid-June, the company reported a reserve of $1.1 billion. The priority task is to pause bitcoin purchases and restore the dollar reserve. Only after this should the company move to a more systematic approach to new acquisitions, rather than increasing its position every time capital is raised.
It is important to emphasize: STRC dividends are cumulative. Missed payments do not disappear and must be compensated later. Therefore, Strategy is unlikely to decide to suspend them. This is a classic example of how an aggressive asset accumulation strategy can lead to financial strain if debt burden and reserves are not managed.
Expert Comment: The situation with Strategy is a lesson for all institutional investors using debt financing to buy bitcoin. While the market is rising, such strategies look brilliant, but in conditions of a correction or rising debt service costs, they can quickly turn into a liquidity trap. I advise Strategy to immediately reconsider its policy and focus on strengthening the balance sheet, rather than increasing its position at any cost.