Strategy, a digital asset-focused financial firm, has reported a significant increase in its USD reserve, reaching an all-time high of $4.65 billion. This development follows a period of rapid growth, with the reserve expanding fivefold in just two and a half months.
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Phong Le, CEO of Strategy, announced in a recent post on X that the company’s reserve and its coverage duration have both reached record levels. Le stated that nearly $3.8 billion was added to the reserve during the rapid expansion, which he attributed to the company’s Digital Credit Capital Framework.
Phong Le highlighted that both the USD reserve and its supporting duration are at all-time highs, with nearly $3.8 billion added in 2.5 months, crediting the Digital Credit Capital Framework for this performance.
Strategy’s reserve now covers approximately 2.7 years of its expected preferred dividends and debt interest obligations. Le described this as clear evidence that the company’s capital allocation strategy is functioning as intended.
The acceleration in reserve growth is notable. At the end of May, the reserve totaled $871 million. In subsequent weeks, a $525 million influx on July 27 brought the total to $3.75 billion. This amount provided roughly 2.1 years of coverage for dividend and interest payments at that point. The company also repurchased $25 million worth of its STRC shares during this phase.
| Date | USD Reserve | Years of Coverage |
|---|---|---|
| Late May 2026 | $871 million | ~0.5 |
| July 27, 2026 | $3.75 billion | 2.1 |
| August 10, 2026 | $4.65 billion | 2.7 |
Bitcoin Sale and Share Buyback
In a separate move, Strategy sold 1,690 bitcoin between August 3 and August 9 for $108.6 million. The proceeds from this sale were used to repurchase 1,152,020 shares of STRC, the company’s own stock. These actions were carried out under the provisions of Strategy’s Digital Credit Capital Framework, which permits bitcoin sales to support share repurchases and other capital needs as approved by the board.
The company’s board established a guideline maintaining that the reserve should cover at least 12 months of expected preferred dividends and financing costs unless specifically approved otherwise. This conservative policy aims to ensure liquidity and stability, especially as Strategy’s commitments grow.
Strategy has utilized various strategies to expand its cash position, including issuing new equity, preferred securities, and selling limited amounts of bitcoin when appropriate. The recent bitcoin sale did not contribute directly to the cash reserve; rather, it funded the buyback of STRC shares, further supporting shareholder value.
As of August 10, Strategy’s USD reserve stands at $4.65 billion, providing nearly three years of coverage for its financial obligations—the highest level since the introduction of its capital framework.
Mini dictionary: Digital Credit Capital Framework, Strategy’s structured system for managing reserves, funding needs, and asset sales. This framework enforces policies around minimum required cash buffers, sets procedures for equity and debt issuance, and enables controlled bitcoin sales to optimize capital efficiency and shareholder value.
