Strategy’s STRC preferred stock bounced 30% on Wednesday, recovering from recent lows after the company disclosed a rapidly expanding cash reserve and a sizable stock repurchase program, according to a report by CoinDesk. The firm now holds approximately $4 billion in cash, boosted by disciplined bitcoin sales earlier this year and a steady bitcoin price that has reduced the risk of forced liquidations.
Cash Reserve Grows to $4 Billion, Bitcoin Remains Untouched
The latest financial disclosures show that Strategy’s cash pile has reached $4 billion, up from $3.2 billion reported in the prior quarter. This mirrors the earlier move when Saylor’s Strategy Raises Cash Reserves to $3.2 Billion, Bitcoin Holdings Unchanged, signaling a deliberate de-risking while maintaining all of its approximately 152,000 BTC. The company has not sold any additional bitcoin since the previous quarter and has instead opted to let existing treasury holdings ride the market.
STRC Dividend and $975M Buyback Reinforce Shareholder Value
In tandem with the cash reserve build, Strategy emphasized its commitment to the STRC preferred stock by preserving its 12% annual dividend and activating a $975 million buyback program. This follows the decision last year to Strategy Maintains STRC Dividend at 12% Despite Discount to Par, which demonstrated that even when the shares traded below the liquidation preference, the company prioritized payout stability. The buyback authorization further signals that management views the current price as undervalued, aligning incentives with preferred shareholders.
Broader Reserve Trends and Institutional Confidence
Strategy’s cash-heavy balance sheet is part of a wider trend of corporate bitcoin-adjacent firms building liquidity buffers. For example, Tether Reports $1.5B Q2 Operating Profit as Excess Reserves Drop by Half, illustrating how large entities are recalibrating reserves in response to market conditions. Bitcoin’s recent stabilization around $85,000—combined with Strategy’s zero-sales stance—reassures investors that the company can weather volatility without diluting its core bet, a factor that likely contributed to the STRC rebound.
