Strategy's preferred stock crashes while CryptoQuant urges pause to Bitcoin buying

On June 24‑25 2026, on‑chain analytics firm CryptoQuant warned that Strategy (formerly MicroStrategy) should suspend new Bitcoin purchases and rebuild its cash reserves. The report said cash reserves had fallen about 38 % since the start of 2026 and annual dividend obligations tied to the variable‑rate preferred share STRC had risen roughly four‑fold to $1.2 billion, cutting dividend‑coverage from more than seven years to about 14 months.

STRC’s market price slid to a record low of $73.6, more than 25 % below its $100 par value, giving the stock an effective yield above 14 %. The common stock (MSTR) also fell below $100, dropping about 23 % in a week to around $86‑87. Investors worry the company may be forced to sell Bitcoin to meet cash needs, despite holding roughly $10.6 billion of unrealized losses on its Bitcoin treasury.

Adding pressure, New York‑based Rosen Law Firm opened a securities‑fraud investigation into Strategy and its executive chairman Michael Saylor, alleging possible misleading disclosures to investors. Retail investors hold a large share of STRC, exposing them to the steep price decline.

The combination of a collapsing preferred‑share price, shrinking cash buffers, rising dividend commitments and legal scrutiny has heightened concerns about Strategy’s financing model and its ability to sustain its Bitcoin‑centric strategy.