Strategy, Michael Saylor's BTC treasury company, has depleted its USD Cash reserve by 60% in seven weeks, falling from $1.61 billion on August 30 to $640.5 million on October 11, according to the company's latest disclosure.
The majority of the depletion stems from buybacks of STRC, Strategy's ultra-high yield dividend stock sold to investors at $90–$100.03 per share. The shares briefly fell to $71.25 before the company undertook extensive buyback efforts to support the price.
At the current depletion rate of approximately $970 million per week, Strategy's USD Cash would be exhausted in roughly four weeks if spending continues without replenishment.
Multiple Cash Reserves
USD Cash is separate from Strategy's USD Reserve, a second cash pool with stricter usage restrictions. The 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. Combined, both reserves declined approximately 18%.
Strategy created the USD Cash pool on August 24 by funding it with approximately $1.57 billion from stock sales the previous week. The company stated that USD Cash was designed to provide management with more flexible liquidity compared to the USD Reserve.
Buyback Authorization
Strategy's board doubled its total STRC buyback authorization to $2 billion in September. As of October 11, only $354.8 million of that authorized amount remained available.
