CryptoQuant has issued a warning about Strategy’s declining cash reserves, which have fallen by 38%. This reduction means the company’s ability to cover dividends has shrunk significantly, from a previous seven-year coverage to just 14 months, according to CoinTelegraph.
Given this sharp decrease in reserves, CryptoQuant recommends halting further Bitcoin purchases to focus on rebuilding the cash buffer. This cautious approach aims to stabilize the company’s financial position amid ongoing market uncertainties.
For Japanese investors, who closely monitor dividend sustainability and reserve management in crypto-related firms, this development highlights the importance of liquidity management in volatile markets.