Michael Saylor’s strategy has amassed 847,363 Bitcoin [BTC]which is equivalent to $53 billion. According to BitcoinTreasuries.NET Strategy bought all these Bitcoins at an average price of $75,646, for a total of 113 purchases and 1 sale since August 11, 2020.
But instead of receiving praise, Strategy has been receiving criticism lately. A recent report from CryptoQuant suggests that despite still owning a significant amount of Bitcoin, the company may be coming under increasing financial pressure from its new income-oriented security, STRC.
STRC falls below its face value of $100
For background, Strategy’s STRC is down to $87.65 at the time of writing, significantly below its $100 face value. This happened as the company’s cash reserves fell sharply in conjunction with a correction in the Bitcoin market.
While Strategy’s annual dividend obligations have nearly quadrupled to $1.2 billion, the company’s cash reserves have declined 38% since the start of 2026.
This means that, unlike more than seven years ago, the company now has enough cash on hand to pay dividends for only about fourteen months. To reassure investors, Strategy could increase dividend yields or issue more MSTR shares, even though Bitcoin is unlikely to be sold in support of STRC.
Recent activity around Strategy
However, through its at-the-market program, Strategy sold 2.71 million MSTR shares between June 15 and 21. As a result, they were able to raise $335.5 million in net proceeds, of which they purchased 520 BTC for $34.9 million.
Following this, some community members pointed out that issuing additional MSTR shares would no longer deliver the premium value on which Saylor’s own capital allocation framework rests.
Critics slam Strategy’s BTC accumulation
In consultation, Julio Morenohead of research at CryptoQuant, stated:
The company’s strategic priority should be to pause Bitcoin purchases and rebuild cash reserves.
Moenor thinks that while Strategy still has a significant Bitcoin treasury, it would be difficult to sell Bitcoin to raise money. This is because the company has an estimated unrealized loss of $10.6 billion, which could reduce shareholder value.
Advocates support Saylor’s strategy plan
However, not everyone shared a similar sentiment. Samson Maaithe CEO of JAN3, said:
$STRC has a self-healing mechanism that most people don’t really understand.
Mow said Strategy is avoiding taking on additional dividend obligations as it stops issuing new substandard shares. Meanwhile, a higher effective yield (12.78% when buying at €90) and the possibility of a capital gain of 11.11% if the stock rises to €100 attract buyers.
Combined, these incentives generate a potential return of almost 24%, stimulating demand and helping STRC recover without Strategy’s direct involvement.
However, Maai also came to the best conclusion when he added:
I would be surprised if it took more than a few weeks for $STRC to get back to the same level.
Final summary
- Michael Saylor’s strategy is adding more and more Bitcoin, but the fact that STRC remains below the $100 mark is a concern.
- The community is divided on whether Strategy should add or subtract from its Bitcoin supply.