Strategy's cash reserve has plummeted 38% year-to-date, leaving only 14 months of dividend coverage — down from a previous 7-year buffer. CryptoQuant CEO Ki Young Ju is calling on the company to pause Bitcoin purchases and rebuild its cash position.
The company's dividend obligations nearly quadrupled to $1.2 billion after issuing STRC preferred stock carrying an 11.5% yield. STRC fell to $82.50 last week — a record 17.5% below its $100 par value — pressured by the Bitcoin bear market correction and simultaneous depletion of cash reserves.
CryptoQuant argues Strategy should adopt a "systematic framework for purchase timing" and create a "disciplined selling framework" for the next bull market. While the company isn't obligated to sell Bitcoin to support STRC, rebuilding cash reserves to ~$2.8 billion is seen as a necessary condition for STRC's recovery.
With $BTC trading around $62K, the biggest public Bitcoin treasury holder faces a critical decision: continue accumulating or shore up its financial foundation first?
$BTC $MSTR
#Bitcoin #Crypto #DeFi #Blockchain #BitcoinNews
The company's dividend obligations nearly quadrupled to $1.2 billion after issuing STRC preferred stock carrying an 11.5% yield. STRC fell to $82.50 last week — a record 17.5% below its $100 par value — pressured by the Bitcoin bear market correction and simultaneous depletion of cash reserves.
CryptoQuant argues Strategy should adopt a "systematic framework for purchase timing" and create a "disciplined selling framework" for the next bull market. While the company isn't obligated to sell Bitcoin to support STRC, rebuilding cash reserves to ~$2.8 billion is seen as a necessary condition for STRC's recovery.
With $BTC trading around $62K, the biggest public Bitcoin treasury holder faces a critical decision: continue accumulating or shore up its financial foundation first?
$BTC $MSTR
#Bitcoin #Crypto #DeFi #Blockchain #BitcoinNews