CryptoQuant says Michael Saylor's Strategy should halt its bitcoin buying

CryptoQuant advised MicroStrategy to halt its Bitcoin buying strategy on May 23, 2024, citing a significant reduction in the company's cash reserves. The analytics firm reported that MicroStrategy's cash cushion, which previously covered seven years of operational expenses, has dwindled to only 14 months. This strategic shift, coupled with purchasing Bitcoin at market cycle tops, has resulted in a substantial unrealized loss of $10.6 billion for the company. CryptoQuant's analysis suggests that MicroStrategy's current financial position makes its aggressive Bitcoin acquisition strategy unsustainable, particularly given the recent market downturn. The firm's report highlights the risks associated with its debt-funded Bitcoin purchases, which have been a cornerstone of its investment approach. The recommendation comes as MicroStrategy continues to hold a significant amount of Bitcoin on its balance sheet, making it one of the largest corporate holders of the cryptocurrency.