- Strategy’s USD Cash dropped 60% from $1.61 billion on August 30 to $640.5 million on October 11, a seven‑week burn of roughly $970 million.
- The majority of that cash went to buy back STRC shares, which had briefly collapsed to $71.25 after being sold to investors for $90–$100.03.
- Strategy’s combined USD Cash and USD Reserve fell about 18% to $5.52 billion, with the reserve used for bond coupons and dividends.
- At the current depletion pace, Strategy’s USD Cash could run out in approximately four weeks unless it tops up the fund.
USD Cash at Strategy has fallen 60% from $1.61 billion on August 30 to $640.5 million on October 11, according to its latest SEC disclosure. The firm spent the majority of that cash on buybacks of STRC, its ultra‑high yield dividend stock that briefly collapsed to $71.25 per share.
Reinstilling confidence that STRC shares would trade near their intended $100 price cost the company — especially common shareholders — extensive cash raised via dilution. Strategy’s pace of USD Cash depletion works out to about $970 million in less than seven weeks, as data shows.
If it continues that average pace and doesn’t top it up, its USD Cash will run out in about four weeks. Meanwhile, Strategy’s separate “USD Reserve,” earmarked for bond coupons and dividend payments, held $4.88 billion as of October 11, down from $5.10 billion on August 30.
The combined change of both USD reserves is still decidedly negative, albeit slightly less dramatically at approximately 18% combined. Strategy created 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 week prior.
Common shareholders paid for executives’ flexibility by suffering dilution of their MSTR shares. The company explained at the time, “USD Cash complements the USD Reserve by providing management with a more flexible source of liquidity for the purposes described above.”
The older USD Reserve had stricter limits, usable for preferred dividends and interest payments unless the board formally authorizes otherwise. Strategy’s board doubled its STRC total buyback authorization to $2 billion in September, yet just $354.8 million of that authorized amount remained as of October 11, according to the filing.
Amid the buybacks, CEO Michael Saylor took to X to post glowing reviews about STRC’s recovery, including an AI‑generated retiree who “doesn’t even bother to check the price of STRC.” Although irresponsible, burying one’s head in the sand would have saved a real investor from STRC’s price whipsawing 29% since Saylor first broadcasted her testimonial on March 30.
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