Strategy may pause Bitcoin buying as cash reserves shrink and dividend obligations rise

CryptoQuant warned that Strategy could need to halt its aggressive Bitcoin acquisition program because dividend obligations have surged to about $1.2 billion and cash reserves have fallen 38% in 2026, dropping dividend coverage from over seven years to roughly 14 months. The firm would require about $2.8 billion in cash to restore a two‑year coverage level. Despite the liquidity strain, Strategy added 520 BTC for $35 million, bringing its total holdings to 847,363 BTC and a portfolio value of roughly $55 billion, though it shows a paper loss of about $9 billion. To bolster liquidity, the company padded its cash reserve by $300 million, raising it to $1.4 billion, funded by issuing common stock. Meanwhile, its perpetual preferred share STRC fell to new lows, driving monthly costs of about $100 million and putting further pressure on the balance sheet. Strategy’s common stock fell more than 5% as investors assessed the combined impact of Bitcoin volatility and rising financing costs.