MicroStrategy Buys Dollars, Not Bitcoin, with Record August Fundraise

MicroStrategy, a company that has made significant investments in Bitcoin, took an unusual approach to managing its finances in August. Instead of buying more Bitcoin, MicroStrategy raised $3.28 billion by selling its own stock.

The company used the funds to grow its USD Reserve from $4.0 billion to $5.10 billion and established a new pool called USD Cash, which holds another $1.59 billion in dollars. This means that MicroStrategy now has a total of $6.69 billion sitting in dollars.

While this may seem counterintuitive for a company that has been actively buying Bitcoin, MicroStrategy's CEO Michael Saylor explained the reasoning behind this move. He stated that the USD Reserve is used to cover dividends and debt interest, while USD Cash is 'a separately designated pool of U.S. dollar liquidity' that can be used for future deployment in general.

It's worth noting that MicroStrategy has not used any of the funds from USD Cash to buy Bitcoin, despite its cost basis being significantly lower than current market prices. The company last bought Bitcoin on June 22 at $67,068 per coin and has since sold 6,916 coins without making any new purchases.