Head of CryptoQuant urges Strategy to stop buying Bitcoin: three tips for Saylor
Ki Young Ju, founder and CEO of analytics platform CryptoQuant, has sharply criticized the current bitcoin accumulation strategy of the company Strategy. In his view, aggressive coin buying is no longer a driver of price growth but has instead become a "liquidity sink" that only hinders natural market cycles.
The catalyst for this statement was Strategy's financial performance. The company's annual dividend obligations have nearly quadrupled to $1.2 billion, while cash reserves are projected to decline by 38% by 2026. According to CryptoQuant, dividend coverage has plummeted from over seven years to just 14 months. This is a troubling signal for any company, and especially for one whose fate is tied to a volatile asset.
Why aren't purchases moving the price?
Ki Young Ju explains that under conditions of low selling pressure, demand from Strategy could indeed have a noticeable impact on quotes. However, now that seller pressure is clearly elevated, such purchases merely hold the price within a range rather than pushing it higher. To support this, he cites data on bitcoin's realized capitalization: over the past two years, it has grown by $467 billion, yet the price has actually declined 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, according to the CryptoQuant CEO, continuous purchases prevent the market from undergoing a "deeper cleansing drawdown." It is precisely such corrections that provide holders with liquidity and confidence to lock in profits, ultimately laying the foundation for a new bull rally. The current cycle is unique: bitcoin has been moving in a broad sideways range for nearly two years, lacking the strength to break upward and not weakening enough for a true capitulation.
Three tips for Michael Saylor
Ki Young Ju directly addressed the founder of Strategy with three specific proposals.
First: immediately suspend bitcoin purchases until cash reserves and dividend coverage are restored. The company's current financial situation is too risky to continue aggressive buying.
Second: develop 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: implement a disciplined sales scheme for the next bull market. Partial sales near cycle peaks do not mean abandoning bitcoin. They would reduce the company's debt burden, lock in value for shareholders, and create a reserve of free liquidity for re-accumulation at lower prices. As Ki Young Ju emphasized, this is not trading but risk management.
As an analyst, I find this call extremely timely. The "buy and hold forever" model works well for an individual investor, but for a public company with debt obligations and shareholders, it carries systemic risks. The market is already signaling that endless demand overhang from a single player cannot overturn fundamental cycles. It's time for Strategy to mature and transition from euphoria to professional capital management.