Wu Blockchain (@WuBlockchain): CryptoQuant Suggests Strategy Pause Bitcoin Accumulation and Prioritize Rebuilding Cash Reserves

CryptoQuant Suggests Strategy Pause Bitcoin Accumulation and Prioritize Rebuilding Cash Reserves CryptoQuant Head of Research Julio Moreno said that as Strategy continues issuing STRC preferred stock to fund Bitcoin purchases, its annualized dividend obligations have risen from about $300 million at the start of the year to roughly $1.2 billion, while cash reserves have declined 38% over the same period. As a result, STRC dividend coverage has fallen from more than seven years to about 14 months. Moreno argued that Strategy should pause Bitcoin purchases until it restores its cash reserves and dividend coverage capacity, and establish a more systematic Bitcoin acquisition framework. He also suggested that the company moderately sell part of its Bitcoin holdings during future bull markets to realize gains, reduce leverage, and replenish cash reserves.