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Strategy has created a $1.59 billion cash pool that can be used for future Bitcoin purchases, share buybacks and other treasury operations. The company disclosed the new “USD Cash” account on August 24 as part of an update to its Digital Credit Capital Framework.
The new pool is separate from Strategy’s existing USD Reserve, which stood at $5.10 billion as of August 23. That reserve remains designated for preferred-stock dividends and interest payments on outstanding debt.
USD Cash Can Be Used to Buy Bitcoin
Strategy said USD Cash provides management with a more flexible source of liquidity than its existing reserve. The company can deploy the funds to acquire Bitcoin, repurchase common or preferred shares, repay convertible notes, increase the USD Reserve or cover other treasury purposes. Strategy said:
“The cash may be retained for future deployment for general Bitcoin Treasury Company purposes.”
Share Sales Fund New Liquidity Pool
Strategy sold 18.26 million shares of MSTR common stock between August 17 and August 23, generating about $2.01 billion in net proceeds. Of that amount, $300 million was allocated to increase the USD Reserve and $136.4 million funded repurchases of Strategy’s STRC preferred stock.
After the $300 million reserve allocation and $136.4 million STRC repurchase, Strategy reported $1.59 billion in USD Cash. The company repurchased about 1.43 million STRC shares for $136.4 million during the same period.
Strategy Holds 840,447 Bitcoin
Strategy did not buy or sell Bitcoin during the week ended August 23. Its holdings remained at 840,447 BTC, acquired for an aggregate purchase price of $63.36 billion and an average of $75,385 per Bitcoin, including fees and expenses.
The new cash pool does not commit Strategy to additional Bitcoin purchases. Instead, it gives management the option to deploy the $1.59 billion across Bitcoin acquisitions, securities transactions and other corporate treasury needs.
