Analytics firm CryptoQuant has called on Michael Saylor's Strategy to suspend its bitcoin accumulation and rebuild its cash reserves. According to the firm, the cash cushion supporting Strategy's STRC instrument has shrunk dramatically, falling from roughly seven years of coverage to just 14 months. CryptoQuant also points to Strategy's tendency to purchase bitcoin near cycle tops, which it says has saddled the company with a paper loss of about $10.6 billion. The recommendation reflects growing scrutiny of corporate bitcoin treasury strategies, particularly those that rely on financial instruments and leverage to fund ongoing purchases. By advising a pause, CryptoQuant suggests Strategy should prioritize financial stability over continued expansion of its bitcoin holdings. The analysis highlights the risks treasury-focused firms face when market timing and liquidity buffers come under pressure during volatile conditions.
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