Michael Saylor’s Strategy has amassed 847,363 Bitcoin [BTC], which is equivalent to $53 billion. According to BitcoinTreasuries.NET Strategy purchased all these Bitcoins at an average cost of $75,646, totalling 113 purchases and 1 sale since the 11th of August 2020.
However, instead of receiving praise, Strategy has recently been drawing criticism. A recent report from CryptoQuant suggests that, despite still owning a significant amount of Bitcoin, the company may be under increasing financial strain from its new income-focused security, STRC.
STRC drops below $100 par value
For background, Strategy’s STRC has fallen to $87.65 at the time of writing, significantly below its $100 par value. This happened along with the company’s cash reserves sharply declining in tandem with a correction in the Bitcoin market.
Although Strategy’s yearly dividend commitments have nearly quadrupled to $1.2 billion, the company’s cash reserves have decreased by 38% since the start of 2026.
This means that, as opposed to more than seven years ago, the company now has enough cash on hand to pay dividends for only roughly 14 months. Hence, to comfort investors, Strategy might increase dividend yields or issue more MSTR stock, even though it is unlikely to sell Bitcoin to support STRC.
Recent activity around Strategy
However, through its at-the-market program, Strategy sold 2.71 million MSTR shares between the 15th and the 21st of June. As a result, they were able to raise $335.5 million in net proceeds, of which they used to purchase 520 BTC for $34.9 million.
Following this, some community members pointed out that issuing additional MSTR shares would no longer produce the premium value that Saylor’s own capital allocation framework relies on.
Critics slam Strategy’s BTC accumulation
In agreement, Julio Moreno, head of research at CryptoQuant, stated,
The company’s strategic priority should be to pause Bitcoin purchases and rebuild its cash reserve.
Moenor thinks that even though Strategy still has a sizable Bitcoin treasury, it would be difficult to sell Bitcoin to raise money. This is because the company is sitting on an estimated $10.6 billion in unrealized loss, which could reduce shareholder value.
Supporters backing Saylor’s plan for Strategy
However, not everyone shared a similar sentiment. Samson Mow, the CEO of JAN3, said,
$STRC has a self-repairing mechanism that most people don’t really understand.
Mow argues that Strategy avoids taking on additional dividend obligations because it stops issuing new shares below par. Meanwhile, a higher effective yield—12.78% if bought at $90—and the possibility of an 11.11% capital gain if the stock rises to $100 draw in buyers.
When combined, these incentives generate a potential return of almost 24%, boosting demand and assisting STRC in its recovery without Strategy’s direct involvement.
Mow, however, also came to the best conclusion when he added,
I’d be surprised if it took more than a few weeks for $STRC to get to par again.
Final Summary
- Michael Saylor’s Strategy is adding more and more Bitcoin but STRC tarding below the $100 mark raises concerns.
- Community divided between whether Strategy should add or subtract from its Bitcoin stash.
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