Nasdaq-listed company Strategy has established a new cash reserve and expanded its overall U.S. dollar liquidity, according to a Monday filing, opting once again to skip direct Bitcoin purchases.
The company increased its typical USD reserve to $5.1 billion and established an additional pool of $1.59 billion in U.S. dollar cash. According to the filing, this newly designated liquidity pool may be used for general Bitcoin treasury purposes, including acquiring Bitcoin, paying declared cash dividends on preferred stock, servicing interest on outstanding debt, repurchasing stock or convertible notes, and increasing the USD reserve.
Strategy has not purchased Bitcoin since June, focusing instead on building cash cushions, conducting stock buybacks, and occasionally selling portions of its cryptocurrency holdings. The company stated that a buyback plan approved in July is aimed at balance-sheet strength, and President and CEO Phong Le has maintained that Strategy intends to remain a long-term buyer of Bitcoin.
During the preceding week, Strategy sold approximately $2 billion in common shares and repurchased $136.4 million of its Stretch preferred shares. Shares of Strategy, which trades on the Nasdaq under the ticker MSTR, traded higher on Monday morning in New York following a stock rally last week driven by rising Bitcoin prices.
Formerly known as MicroStrategy, the corporate software company began purchasing Bitcoin in 2020 as a method to protect shareholder returns. The firm has since spent nearly $64 billion on the cryptocurrency, largely utilizing leverage, and currently holds 840,447 BTC, making it the largest corporate holder of the digital asset.
