Strategy should suspend its bitcoin buying and rebuild cash reserves, Cryptoquant said, after the company’s dividend coverage slid from more than seven years to 14 months. The research firm pointed to preferred shares that have continued to trade below face value as a sign of investor caution.

Bitcoin is trading around $62,000 with little movement, but the stability masks a deeper structural concern. CryptoQuant has urged Strategy, the Michael Saylor-led corporate bitcoin buyer, to halt BTC accumulation and rebuild cash reserves before pressure around its preferred stock escalates. The recommendation comes as Strategy’s preferred stock trades at a steep discount and its dividend burden has risen sharply, according to CryptoQuant.

Patrick Witt says Bitcoin “stands alone” in U.S. policy. He adds that any new government Bitcoin acquisition must currently be budget-neutral.

Grayscale Head of Research Zach Pandl said Strategy’s growing preferred-stock obligations could create a structural cash-flow squeeze. He warned the company’s $15.5B preferred stack and roughly $1.5B in annual dividends may compel repeated Bitcoin sales, challenging Michael Saylor’s accumulation thesis, according to Grayscale.

BlackRock said Bitcoin’s role in portfolios is evolving, positioning it as a complementary diversifier for long-term strategies. The asset manager said a 1% to 2% allocation can be a reasonable range for investors who expect adoption to continue while accounting for volatility. It added that going beyond that range could materially increase Bitcoin’s contribution to overall portfolio risk.

Michael Saylor should stop buying Bitcoin and rebuild cash reserves at Strategy, according to CryptoQuant. The on-chain analytics firm said mounting dividend obligations and shrinking cash have tightened the company’s financial flexibility.

CryptoQuant says Michael Saylor’s Strategy (formerly MicroStrategy) should take a break from accumulating Bitcoin and focus on rebuilding its cash buffer. The analytics firm warned that Strategy may need to slow or temporarily halt its aggressive buying as cash reserves have reportedly fallen by about 38%.

Analysts say bitcoin could fall to around $59,000 in the near term. They attribute the risk mainly to weaker market liquidity. With investors turning more cautious and avoiding large trades, volatility and selling pressure could rise. That could soften demand and push prices lower.