Strategy should halt BTC purchases, says CryptoQuant research head

Julio Moreno, head of research at CryptoQuant, argued that Strategy should stop making additional Bitcoin purchases and time its buys more strategically. He attributed the primary cause of the price of Strategy's preferred stock (STRC) falling below $100 to the company's deteriorating fundamentals. Moreno dismissed claims that leveraged position liquidations were the main driver, pointing instead to the STRC dividend's cash coverage dropping to an all-time low. He explained that Strategy's dollar reserves are being depleted, while its annual dividend obligation for STRC has quadrupled this year to $1.2 billion. While Strategy holds a significant amount of Bitcoin, selling it to secure cash would likely damage shareholder value, Moreno added. He concluded that the company's strategic priority should be to halt further Bitcoin acquisitions and focus on rebuilding its cash reserves.