CryptoQuant Says Strategy’s Dividend Coverage Has Shrunk to 14 Months
JH Kim
Summary
- CryptoQuant said Strategy’s dividend payment burden has risen sharply while its cash holdings have declined.
- Its annual dividend payment obligation has quadrupled to $1.2 billion, while cash holdings have fallen 38% this year.
- As a result, dividend coverage plunged from more than seven years to 14 months, and Strategy should halt Bitcoin (BTC) purchases and increase its cash holdings.
Forecast Trend Report by Period
Strategy’s dividend burden has risen sharply as its cash holdings have declined, CryptoQuant said.
On June 23, CryptoQuant said Strategy’s annual dividend payment obligation had quadrupled to $1.2 billion, while its cash holdings had fallen 38% this year.
As a result, dividend coverage — a measure of the company’s ability to meet dividend payments — plunged from more than seven years to 14 months.
CryptoQuant said Strategy should halt Bitcoin purchases and raise its cash holdings.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
