CryptoQuant's Head of Research Julio Moreno argues that Strategy must immediately stop buying Bitcoin and focus on rebuilding cash reserves to relieve pressure on its preferred stock, Stretch (STRC). STRC fell to a record low of $79.85 on Wednesday, trading below its $100 par value for over a month. The product offers an 11.5% annual dividend, but ballooning costs have left Strategy in a bind. Moreno warns that dividend coverage has collapsed from over 7 years at the start of 2026 to just 14 months today. He recommends accumulating enough cash to cover 24 months of dividends and establishing a systematic framework for Bitcoin purchases and sales. Earlier this week, Strategy reported holding 847,363 Bitcoin worth $50 billion, with unrealized losses of about $13 billion. JPMorgan analysts have also noted Strategy's fate is tied to the dollar. Strategy has sold 32 Bitcoin for $2.5 million recently, raising investor concerns. Since early 2026, dividend obligations have nearly quadrupled to $1.2 billion annualized. Common shares also fell over 10% to a 27-month low of $92.28.

Key facts

• STRC fell to a record low of $79.85, below its $100 par value, with 11.5% annual dividend.
• Dividend coverage collapsed from over 7 years to just 14 months; Moreno urges 24-month buffer.
• Strategy holds 847,363 Bitcoin worth $50 billion, with ~$13 billion unrealized losses.
• Company sold 32 Bitcoin for $2.5 million, raising investor concerns about market support.
• Common stock fell to $92.28, down 80% from its peak; dividend obligations quadrupled to $1.2B.

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