Strategy's cash reserves shrink 60% in seven-week period

Michael Saylor's bitcoin treasury firm Strategy saw its USD Cash drop 60% to $640.5 million by October 11, down from $1.61 billion on August 30, per its most recent filing.

Most of that cash went toward repurchasing STRC, Strategy's ultra-high yield dividend stock. The company had sold those shares to investors at $90 to $100.03 each, but they later plunged to $71.25.

Restoring confidence that STRC shares would trade near the intended $100 level has required significant cash, mostly raised through diluting common shareholders, thereby hitting them hardest.

The rate of decline implies roughly $970 million consumed in under seven weeks. At that same pace, with no replenishment, the cash would be exhausted in about four weeks.

During these buybacks, Saylor has been tweeting positive comments about STRC's recovery, including another post about his fictional retiree living off STRC dividends.

Pretending to ignore STRC's price

This AI-generated, carefree investor does not even look at STRC's price.

While an irresponsible move, ignoring the price would have spared real investors the shock of STRC's 29% price swing since Saylor first shared the retiree's testimonial on March 30.

Still living comfortably. $STRC pic.twitter.com/FuqNd35DnG

— Michael Saylor (@saylor) October 2, 2026

The August USD Cash total included anticipated proceeds from unsettled stock sales, yet it remains accurate per Strategy's accounting with that note.

In addition, Strategy holds another dollar reserve called the 'USD Reserve,' set aside for bond coupons and dividend payments, which stood at $4.88 billion on October 11.

That figure is a decline from the $5.10 billion reported on August 30.

Together, the two reserves have fallen by roughly 18%—still a significant drop, though less severe.

Two separate USD cash reserves at Strategy

Strategy established USD Cash on August 24, funding most of it with about $1.57 billion from the sale of roughly $2 billion of MSTR stock the prior week.

As usual, common shareholders bore the cost of management's flexibility through dilution of their MSTR holdings.

At the time, the company said: 'USD Cash complements the USD Reserve by providing management with a more flexible source of liquidity for the purposes described above.'

Essentially, executives gave themselves a second cash pool that allowed them more spending flexibility.

The earlier USD Reserve had tighter constraints. It can be used only for preferred dividends and interest payments without board approval.

For instance, $142.5 million was disbursed for those purposes in the week ending October 4.

In September, Strategy’s board increased its STRC buyback authorization to $2 billion, but only $354.8 million remained by October 11.