Strategy's USD Cash Falls 60% in Seven Weeks as STRC Buybacks Drain Funds
Bitcoin company Strategy drains its cash in weeks
Michael Saylor's company Strategy had $1.61 billion in USD Cash on August 30. Just seven weeks later, that number fell to $640.5 million. The company disclosed the drop in SEC filings this week.
The bulk of the spending went toward buying back STRC, an ultra-high yield dividend stock that Strategy launched to investors at $90 to $100 per share. Those shares soon fell to $71.25, prompting the company to spend heavily trying to support the price.
At the current pace, Strategy would run out of USD Cash in about four weeks if it does not add more funds.
Key figures on the cash burn
- USD Cash fell 60%: from $1.61 billion on August 30 to $640.5 million on October 11
- About $970 million was spent in under seven weeks
- STRC buyback authorization was doubled to $2 billion in September, but only $354.8 million remained available by October 11
- STRC shares sold at $90–$100 per share in the IPO, then dropped to $71.25
Two separate cash reserves at Strategy
USD Cash is not Strategy's only dollar pool. The company also maintains a separate account called the USD Reserve, which is meant for bond coupons and dividend payments.
The USD Reserve held $4.88 billion as of October 11, down slightly from $5.10 billion on August 30. Combined, both reserves dropped about 18% over the same period.
Strategy created USD Cash on August 24, funding it mostly with about $1.57 billion raised from selling roughly $2 billion of MSTR stock the week before. The company said the new account gives management "a more flexible source of liquidity" compared to the older, more restricted USD Reserve.
Saylor promotes STRC online as share price falls
While spending heavily on buybacks, Saylor has used his X account to post positive updates about STRC's recovery. He shared an AI-generated image of a supposed retiree living comfortably on STRC dividends, along with the caption "Still living comfortably. $STRC." The post came on October 2, 2026.
The article notes that STRC's price has swung about 29% since Saylor first shared the testimonial on March 30.
What common shareholders paid for
The article says the buyback spending has come largely from funds raised through the sale of MSTR stock, which diluted existing common shareholders. Reinstilling confidence that STRC would trade near its intended $100 price has cost the company extensive cash, the article reports.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.