Strategy Bolsters Cash Reserves to $1.4B Following STRC Decline
Strategy increases its cash reserves to $1.4 billion after purchasing $35 million worth of Bitcoin, as reported by Decrypt. This move comes after the company’s preferred stock, Stretch (STRC), faced significant volatility and lower valuations last week.
Strategy, the firm founded by Michael Saylor, has announced a significant increase in its cash reserves to $1.4 billion. This follows a purchase of 520 Bitcoin for $35 million, marking the firm’s smallest Bitcoin buy since a recent liquidation of 32 BTC three weeks ago.
The company accumulated its cash reserves over three weeks, with $300 million derived from issuing common stock. This influx aims to enhance the credit quality of its Digital Credit securities. Saylor stated, "We also acquired 520 BTC for $35 million, increasing our $BTC Reserve to ₿847,363."
Strategy's recent activities come at a challenging time; its preferred stock, Stretch (STRC), dropped as low as $82.53, which is about 17% below its $100 par value. The decline has raised concerns among investors regarding the sustainability of Saylor's strategy for digital credit. With STRC saddling the firm with approximately $100 million in monthly costs, maintaining healthy cash reserves becomes crucial to signaling business sustainability. As of now, STRC is trading around $91.
This situation reflects the ongoing volatility in the cryptocurrency market and highlights the importance of cash reserves for firms involved in digital asset investment. The ability to raise cash through common stock issuance will likely be a focal point for investors looking for stability amidst the fluctuations of the Bitcoin market.
Moving forward, investors will be watching how Strategy manages its balance sheet and the performance of STRC, especially as it faces pressures from both market conditions and operational costs.
Summary based on original reporting by André Beganski at Decrypt, originally published Jun 22, 2026. SolanaWire does not republish source content.
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