CryptoQuant has called for MicroStrategy to stop buying Bitcoin (BTC) and to build new cash reserves. The research firm released this call on June 23, approximately two weeks after MicroStrategy, led by Michael Saylor, began this buying operation.

During that period, the company spent two consecutive weeks channeling most of its new investment funds into cash rather than Bitcoin, thereby diluting the intensity of this guidance

A closer look at CryptoQuant’s warning to MicroStrategy

In a report dated June 23, CryptoQuant said MicroStrategy’s annual dividend obligations rose nearly fourfold to $1.2 billion in 2026

Reserves in USD, a buffer for these payments, fell by 38% over the same period

STRC, the floating-rate preferred stock that Strategy offered as a stable instrument near $100, fell last week to $82.50, marking an all-time low and about 17.5% below par value

This gap reduces dividend coverage capability from more than seven years to around 14 months, according to CryptoQuant’s calculations. Reserves were about $2 billion before May, when MicroStrategy used about $1.5 billion to repurchase convertible notes due in 2029

The company argues that selling Bitcoin to replenish reserves could have a negative impact because MicroStrategy has an unrealized loss of $10.6 billion due to Bitcoin’s average purchase price of up to $75,000, but the current price is far below that

CryptoQuant analyst Julio Moreno said the company’s strategic priority should be to stop buying Bitcoin and build new cash reserves

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MicroStrategy has already adjusted its strategy

Updates to the strategy’s weekly buy schedule show that the shift began before the warning. In the week of June 22, the company bought only 520 coins of Bitcoin for approximately $35 million

In the same week, the company raised $335.5 million by selling common shares and funneled $300 million into reserves, pushing the total to $1.4 billion

Strategy has increased its USD Reserve by $300 million to $1.4 billion and plans to continue replenishing it to support the credit quality of its Digital Credit securities. We also acquired 520 BTC for $35 million, increasing our $BTC Reserve to ₿847,363. $MSTR $STRC.…

— Strategy (@Strategy) June 22, 2026

One week earlier, the company bought 1,587 BTC but still kept channeling most of its revenue into cash. In both of these weeks, the company sold more shares than it used to buy Bitcoin

MicroStrategy presents a cash accumulation strategy as a way to protect the credit quality of its preferred stock. This action represents a shift from its long-standing policy of buying only

The real point of contention right now

Bitcoin’s current value stayed near $62,534, down about 2.5% in a single day, causing the reserves to keep recording losses

CryptoQuant says reserves need to increase to roughly $2.8 billion, or about 24 months’ worth of coverage, before STRC can recover. At present, the value stands at $1.4 billion, meaning Strategy has only reached halfway

Strategy does not need to sell Bitcoin to hedge STRC. It can also increase dividends by 11.5% or issue additional MSTR shares—both of which it has already done

So the question now is not about creating reserves again, but whether MicroStrategy can move fast enough to make STRC strong again

The next purchase data will show whether the company continues to hold more cash than Bitcoin