Strategy’s USD Cash Falls 60% as Combined Balances Drop 18%

Strategy’s USD Cash balance fell 60% to $640.5 million by Oct. 11, while its separate USD Reserve also declined, reducing the company’s combined dollar balances by about 18% since Aug. 30.

USD Cash fell from $1.61 billion over that period; the Aug. 30 figure included expected proceeds from stock sales that had not yet settled. Strategy’s USD Reserve, designated for preferred dividends and interest payments, decreased to $4.88 billion from $5.10 billion.

Strategy created USD Cash on Aug. 24. About $1.57 billion from the sale of roughly $2 billion in MSTR common stock the prior week provided most of its initial funding. The company described USD Cash as a more flexible source of liquidity than the USD Reserve.

Strategy used $142.5 million from the USD Reserve for preferred dividends and interest payments during the week of Oct. 4. Its board doubled the authorization for STRC buybacks to $2 billion in September, with $354.8 million remaining as of Oct. 11.