CryptoQuant Says Strategy Should Pause Bitcoin Buys and Rebuild Cash Reserve

Strategy Inc. (NASDAQ: $MSTR) is facing a sharper warning over the structure behind its Bitcoin (CRYPTO: $BTC) accumulation model.

CryptoQuant said the company should pause new Bitcoin purchases, rebuild its U.S. dollar cash reserve and become more selective about when it adds to its holdings. The recommendation comes as pressure builds around STRC (NASDAQ: $STRC), Strategy's high-yield preferred stock product, which has fallen well below the $100 level it was designed to hold.

The strain reflects a harder funding backdrop for the company formerly known as MicroStrategy. Strategy has used stock issuance and preferred-share products to keep buying Bitcoin, turning the company into the largest public corporate holder of the asset. That model worked best when Bitcoin was rising, capital markets were receptive and the company's equity premium remained strong.

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Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/crypto/articles/cryptoquant-says-strategy-pause-bitcoin-185400687.html)