# Strategy Boosts USD Reserves to $6.7 Billion, Pauses Bitcoin Buys

**Published:** 2026-08-27T07:56:12.993Z  
**Topic:** Microstrategy Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/c91b5624-e385-4183-bc3a-ac4567795690

Strategy increased its USD reserves by $1.9 billion to $6.7 billion, selling $2 billion in MSTR shares to bolster cash and stabilize its STRC preferred stock.

Bitcoin treasury firm Strategy, formerly MicroStrategy, has increased its US dollar reserves by $1.9 billion, bringing its total cash position to $6.7 billion [1]. This move, funded by selling approximately $2 billion worth of MSTR common stock, signals a shift towards liquidity management alongside its substantial Bitcoin holdings and a pause in its consistent large-scale Bitcoin purchases [1, 3, 4].

| At a glance | |
|---|---|
| USD Reserve | $6.7 billion [1] |
| Cash Increase | $1.9 billion [1] |
| MSTR Shares Sold | $2 billion [3] |
| Bitcoin Holdings | 840,447 BTC [3] |

## Capital Reallocation and Liquidity Strategy
Strategy sold 18,261,118 MSTR shares between August 17 and August 23, without buying or selling any Bitcoin during this period [3, 4]. Of the net proceeds, $136.4 million was used to repurchase the company's STRC preferred stock, $300 million increased its ring-fenced USD Reserve to $5.1 billion, and the remaining $1.59 billion was allocated to a new "USD Cash" liquidity account [3]. This new USD Cash pool is designated for general company purposes, including potential Bitcoin purchases, preferred stock dividends, interest on debt, and further reserve increases [3].

The company's USD reserves now stand at $6.7 billion, up from $4.8 billion previously reported [1]. This accumulation of cash, achieved by issuing equity rather than selling Bitcoin, addresses the need for dollar-denominated dividend payments on its preferred equity [1]. Analysts had previously suggested Strategy should pause Bitcoin purchases and rebuild its cash reserves, noting that its USD cash reserve had fallen 38% since the start of the year, while annualized dividend obligations quadrupled [2]. Dividend coverage had been reduced to 14 months from over seven years, with approximately $2.8 billion needed in the cash reserve for STRC to recover [2]. Research firm Bernstein estimates the current cash covers 2.8 years of dividend payments [3].

## Impact on Bitcoin Market and Share Performance
Strategy's Bitcoin holdings remain at 840,447 BTC, valued at roughly $65.8 billion at current prices, representing about 4% of Bitcoin's 21 million supply cap [3]. The average purchase price for these holdings is $75,385 per BTC, totaling around $63.4 billion, which currently reflects about $2.4 billion in unrealized profit [3]. The company's decision to build its cash reserves and stabilize its STRC preferred stock comes as Bitcoin trades near all-time highs following a sharp rally [3].

The pause in Strategy's Bitcoin purchases removes a significant source of demand from the market, as the company has been a consistent large-scale buyer [1]. However, the $6.7 billion cash reserve also represents potential "dry powder" for future Bitcoin acquisitions if market conditions are deemed favorable [1]. The STRC preferred stock, which recently traded around $96.43, has been volatile, having fallen below its $100 par level [2, 3]. Strategy's common stock (MSTR) gained 6.1% last week, closing at $119.25, while Bitcoin rose nearly 25% over the same period [3].

## What to watch
*   **STRC Preferred Stock Performance:** Monitor STRC's trading activity relative to its $100 par value, as its stabilization is linked to Strategy's ability to efficiently issue new shares for Bitcoin acquisitions [2, 3].
*   **Bitcoin Acquisition Resumption:** Watch for any announcements regarding Strategy's decision to resume Bitcoin purchases, given its substantial $6.7 billion cash reserves [1].
*   **Dividend Coverage:** Track Strategy's dividend coverage ratio, which analysts suggest needs to reach 24 months for STRC to fully recover [2].

Strategy's strategic shift to bolster its cash reserves reflects a move to enhance financial stability and manage dividend obligations, while maintaining its long-term conviction in Bitcoin.

## Sources
1. Crypto Briefing — [Strategy’s USD reserves climb $1.9B to $6.7B as the Bitcoin treasury firm stockpiles cash](https://cryptobriefing.com/strategy-usd-reserves-rise-6-7-billion/)
2. CNBC — [Strategy should halt bitcoin buys and bolster cash reserves, CryptoQuant says](https://www.cnbc.com/2026/06/25/strategy-should-halt-bitcoin-buys-and-bolster-cash-reserves-cryptoquant-says.html)
3. Cryptorank — [Bitcoin treasury firm Strategy reallocates $2B from... | CryptoRank.io](https://cryptorank.io/insights/deals/strategy-post-ipo-2026-08-24)
4. Info — [Strategy Sells $2B in MSTR Stock, Establishes $1.59B "USD Cash..."](https://info.arkm.com/research/strategy-sells-2b-in-mstr-stock-establishes-1-59b-usd-cash-account)

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Cite as: TrendWatcher, "Strategy Boosts USD Reserves to $6.7 Billion, Pauses Bitcoin Buys", https://www.trendwatcher.in/article/c91b5624-e385-4183-bc3a-ac4567795690