CryptoQuant Urges MicroStrategy to Halt Bitcoin Buys as Cash Reserves Slip 38%
MSTR•MicroStrategy's USD cash reserves have tumbled 38% to $1.4 billion while annual dividend obligations have quadrupled, slashing dividend coverage to 14 months and necessitating $2.8 billion for preferred stock recovery. The company holds $50 billion in Bitcoin with $10.6 billion of unrealized losses; shares slid over 43% in June.
1. CryptoQuant Report Highlights Cash and Dividend Strains
The CryptoQuant report urges MicroStrategy to suspend Bitcoin purchases until it rebuilds its cash reserves and adopts a systematic, fundamentals-driven buying strategy. The analytics firm notes MicroStrategy's USD reserves have fallen 38% to $1.4 billion, annual dividend obligations have quadrupled, and dividend coverage has plunged to 14 months.
2. Bitcoin Holdings, Losses and Stock Volatility
MicroStrategy still holds about $50 billion in Bitcoin but has incurred $10.6 billion in unrealized losses, with all 2024–2026 purchases underwater. Shares slid more than 43% in June, and its STRC preferred stock hit record lows over 20% below par, raising concerns that any forced asset sales could destroy shareholder value.
