Strategy Reports $140 Million Decline in USD Reserves Amid Ongoing Financial Obligations

Strategy, the company formerly known as MicroStrategy, has reported a significant decline in its USD reserves and cash, which fell by $140 million to approximately $6.4 billion as of mid-September 2026. This decrease follows a previous drop of $176 million, totaling over $300 million in liquid dollar holdings lost within just two weeks. The firm, which holds around 840,000 Bitcoin, has opted to maintain its cryptocurrency assets rather than liquidate any portion to meet financial obligations.

The recent drawdown is primarily attributed to Strategy's annual obligations, which include approximately $1.7 billion in preferred stock dividends and interest payments. The company's reserves are divided into a restricted USD Reserve of about $5.1 billion, designated for servicing these obligations, and a more flexible USD Cash pool of roughly $1.59 billion, intended for operational needs. Despite the recent losses, Strategy still has several years of coverage for its fixed obligations, with a runway of approximately three and a half years at the current burn rate.

Strategy has adopted a USD Reserve Policy that restricts the use of its core reserves solely for dividend and interest support, requiring board approval for any alternative use of funds. This policy underscores the company's commitment to preserving its Bitcoin holdings, as it has not engaged in any buying or selling of Bitcoin during the reporting period. However, this approach places the financial burden on equity holders, as the company replenishes its dollar liquidity through at-the-market equity offerings, which dilute existing shareholders.

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Source: KLEA News