Strategy Adds $525M to Cash Reserve, Skips Bitcoin Buy Again
Strategy, a Bitcoin treasury firm, has increased its cash reserve by $525 million to reach $3.75 billion. This move comes as the company skipped buying Bitcoin for a fifth consecutive week, instead choosing to add to its USD Reserve.
The reserve now covers two and one-tenth years of preferred dividends and debt interest that Strategy owes each year, totaling $1.76 billion. This is a significant milestone for the company, demonstrating its ability to manage its finances effectively.
Strategy also made headlines with its first purchase under a $1 billion authorization, buying back 288,930 shares of its own preferred stock (STRC) for $25 million. The acquisition drew from the Digital Credit Securities Repurchase Program approved by the board on June 29, leaving $975 million available and an untouched $1 billion for common stock purchases.
The firm's decision to prioritize adding to its USD Reserve over buying Bitcoin may raise eyebrows among investors who had expected Strategy to follow through on its earlier plans. However, the company has maintained that its strategy is focused on maximizing shareholder value, and it appears that this move is in line with those goals.