The warning comes as Strategy shares continue to slide. MSTR traded at $96.27 on June 24, down 7.2% during the session and near its lowest level in two years. Regulatory filings show the stock has lost nearly 20% over the past five trading days and more than 38% over the last six months.

Recent capital allocation decisions have added to the debate about the Strategy’s balance sheet. Company disclosures show that Strategy sold approximately 2.71 million MSTR shares last week, generating about $335.5 million in proceeds.

Executive Chairman Michael Saylor later revealed that the company used about $35 million of that money to buy 520 Bitcoin. At the same time, Strategy increased its US dollar reserves by approximately $300 million, bringing its cash balance to approximately $1.4 billion.

Separate concerns have emerged from on-chain analytics firm CryptoQuant, which recently urged Strategy to slow its Bitcoin purchases and focus on rebuilding liquidity. According to CryptoQuant, annual dividend commitments tied to the company’s preferred stock products have risen to nearly $1.2 billion.

Preferred stock bonds attract attention

CryptoQuant’s concerns are centered on STRC, Strategy’s preferred stock product. The firm reported that the company’s cash reserves have fallen 38% in 2026, while dividend coverage has dropped from more than seven years to about 14 months.

CryptoQuant CEO Ki Young Ju also argued that the Strategy’s Bitcoin buying is no longer a key factor in pricing. He said buying during periods of strong selling pressure could help protect Bitcoin’s range but is unlikely to spark a new rally.

In X’s next post on June 24, Schiff expanded his criticism of Strategy’s STRC preferred stock. He argued that the security had been marketed to risk-averse retirees as a lower-volatility way to gain exposure to the company’s Bitcoin strategy, despite falling more than 5% on the day and over 17% below levels where many investors reportedly purchased shares the previous month.