MicroStrategy Boosts Cash to $1.4B After Reserves Plunge 38% and Dividend Obligations Top $1.2B
MSTR•CryptoQuant urged MicroStrategy to halt Bitcoin buys and rebuild cash after its annual dividend obligations jumped to $1.2 billion and US dollar reserves plunged 38%. MicroStrategy already boosted its cash reserve to $1.4 billion and reduced Bitcoin purchases as it holds a $10.6 billion unrealized loss.
1. CryptoQuant’s Recommendation
CryptoQuant analysts highlighted that MicroStrategy’s annual dividend obligations soared to $1.2 billion in 2026 after dividends on its common and preferred shares jumped fourfold, while its US dollar cash reserve plunged 38% year-to-date. The firm advised pausing Bitcoin acquisitions to rebuild liquidity against mounting fixed payouts.
2. Equity Sale and Reserve Replenishment
In response, MicroStrategy issued $335.5 million of common stock in the week of June 22, directing $300 million into its cash reserve to raise the total to $1.4 billion. This move restored a liquidity buffer after prior spending on convertible note repurchases and Bitcoin acquisitions had depleted cash.
3. Bitcoin Purchase Slowdown and Loss Accumulation
Over the same period, MicroStrategy trimmed its Bitcoin purchases, acquiring 520 coins for approximately $35 million. With Bitcoin trading below MicroStrategy’s average cost near $75,000 per coin, the company is carrying an unrealized loss of roughly $10.6 billion on its treasury holdings.
