As Strategy's cash reserves are now enough to only pay 14 months of dividends from the previous seven-year level, CryptoQuant said that the company should pause Bitcoin purchases and rebuild the reserves.<\/p>\n
After Strategy's dividend coverage fell to 14 months from seven years, CryptoQuant thinks the company led by Michael Saylor should pause Bitcoin purchases and focus on replenishing its cash reserve that's down 38% year-to-date.<\/p>\n
Strategy's dividend obligations have nearly quadrupled to $1.2 billion, as the company issued substantial new STRC preferred stock, which carries an 11.5% yield.<\/p>\n
\u201cThey should pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework for purchase timing,\u201d wrote the market data analytics provider's CEO Ki Young Ju in a Wednesday X post, adding that the biggest public Bitcoin treasury holder should also create a \u201cdisciplined selling framework\u201d for the next bull market.<\/p>\n
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