CryptoQuant has urged MicroStrategy to stop buying Bitcoin (BTC) and rebuild its capital. The research firm published that call on June 23, almost two weeks after the Bitcoin economy led by Michael Saylor had already begun to act.
By that time, the company had spent two straight weeks moving most of its funds into cash, not Bitcoin. That moment disrupts the power of the mind.
Inside CryptoQuant’s MicroStrategy Alert
In June 23rd reportCryptoQuant says MicroStrategy’s annual revenue is about to quadruple to $1.2 billion in 2026.
Its US dollar reserves, which pay the bills, have fallen by 38% over the same period.
STRC, the exchange market that favors Strategy stock as a fixed asset near $100, instead fell to $82.50 last week. It was noticed low profileabout 17.5% under par.
This difference reduced the distribution of shares from seven years to about 14 months, according to CryptoQuant’s calculations. The reserve was close to $2 billion before May, while MicroStrategy spent about $1.5 billion repurchasing convertible notes because 2029.
Selling Bitcoin to replenish the reserves would be profitable, the company argued. MicroStrategy is sitting on $10.6 billion in unrealized losses, as Bitcoin is now trading below its average value of around $75,000.
“The company’s first priority should be to stop buying Bitcoin and rebuild its reserves,” he said Julio Moreno is a CryptoQuant analyst.
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MicroStrategy had already been replaced
Strategy’s weekly trading update shows the trend started before the warning. In the week of June 22, it he bought only 520 Bitcoin about $35 million.
That same week, Strategy raised $335.5 million in private equity sales. It managed $300 million in reserves, raising up to $1.4 billion.
A week earlier, it bought 1,587 BTC but still made a lot of money. For both weeks, Strategy was sell more goods than they do on Bitcoin.
MicroStrategy invests in construction as a hedge against the credit quality of its preferred shares. The move marks a shift from its long-standing consumer-only promises.
The Real Debate Now
The price of Bitcoin it stayed close to $62,534, down about 2.5% on the day, keeping the economy under water.
CryptoQuant says that reserves must reach about $2.8 billion, or 24 months of coverage, before STRC starts to recover. At $1.4 billion, the Strategy is almost there.
Strategy is no need to sell Bitcoin to protect STRC. It can either raise the dividend by 11.5% or issue more MSTRs instead, based on the previous withdrawals.
So the question is not to rebuild the database. It’s as if MicroStrategy can quickly become a permanent STRC.
The next update will show if it keeps money ahead of Bitcoin.
A note CryptoQuant’s MicroStrategy Warning Comes Two Weeks Late appeared for the first time BeInCrypto.
