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Strategy boosts USD cash reserves while pausing bitcoin buys
Nasdaq-listed Strategy increased its USD reserve to $5.1 billion and created an additional $1.59 billion cash pool, while it repurchased $136.4 million in Stretch preferred shares.
Strategy, the Nasdaq-listed company previously known as MicroStrategy, said it has paused bitcoin buying since June but is building additional U.S. dollar liquidity for future deployment. In a Monday filing, the firm reported it raised its typical cash buffer to $5.1 billion and also created a separate $1.59 billion USD cash pool that it may use for future bitcoin purchases and other general bitcoin treasury purposes.
The filing described USD cash as a separately designated pool the company may retain for uses that can include acquiring bitcoin, paying declared cash dividends on its preferred stock, and interest on outstanding indebtedness, as well as repurchasing its MSTR stock or preferred stock and handling convertible notes.
Strategy also disclosed balance sheet activity alongside the cash build. It said it repurchased $136 million of $STRC and previously approved a stock buyback plan in July, which the company said is focused on balance sheet strength rather than retreat. The company’s CEO Phong Le has stated Strategy intends to remain a long-term bitcoin buyer.
According to the filing, Strategy sold about $2 billion in common shares last week, and it also repurchased $136.4 million of its Stretch preferred shares. The outlet noted the stock was trading higher in New York Monday morning as bitcoin prices rose, and that Strategy holds about 4% of the total BTC supply with about 0% net leverage.
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