CryptoQuant says Michael Saylor’s Strategy should halt its bitcoin buying
CryptoQuant says the cash cushion behind Strategy’s STRC has thinned from seven years of coverage to 14 months, and buying BTC at cycle tops has left the company with a $10.6 billion paper loss.
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Summary
- CryptoQuant warns that Strategy has overextended itself by aggressively buying bitcoin, urging the company to halt purchases and rebuild its depleted cash reserves.
- The firm’s STRC preferred stock has dropped about 17.5% below its $100 par level as dividend obligations have nearly quadrupled to $1.2 billion while cash reserves have fallen 38% this year.
- CryptoQuant says Strategy’s dividend coverage has shrunk from more than seven years to about 14 months and recommends restoring reserves to roughly $2.8 billion before resuming systematic bitcoin accumulation.
