CryptoQuant Says Strategy’s Dividend Coverage Has Dropped to 14 Months

Strategy’s dividend burden has risen sharply while its cash holdings have declined, according to CryptoQuant.

CryptoQuant said June 23 that Strategy’s annual dividend payment obligations have quadrupled to $1.2 billion, while its cash holdings have fallen 38% this year.

As a result, dividend coverage — a measure of the company’s ability to meet dividend payments — has plunged from more than seven years to 14 months, CryptoQuant said.

The firm added that Strategy should stop buying Bitcoin and increase its cash holdings.