Strategy cryptocurrency firm pauses Bitcoin buying to rebuild cash

MicroStrategy, the Bitcoin investment company led by Michael Saylor, has been advised to suspend further Bitcoin purchases and focus on rebuilding its cash reserves. The firm’s preferred‑stock dividend obligations have risen sharply while its cash holdings fell about 38% year‑to‑date, cutting dividend‑coverage from over seven years to roughly 14 months. Analysts estimate the company needs roughly $2.8 billion in cash to restore a 24‑month dividend safety buffer.

At the same time, market sentiment toward digital‑asset treasury companies (DAT) has soured as Bitcoin prices slip below $60,000. Cantor Equity Partners delayed the shareholder vote for its planned SPAC merger with BSTR Holdings, citing concerns over the declining Bitcoin market and the financing model of DAT firms. The delay highlights broader investor worries about cash liquidity and the sustainability of dividend‑heavy Bitcoin‑focused business models.