Strategy Builds $1.59B Cash Reserve as Bitcoin Holdings Remain Unchanged

Strategy, the Bitcoin treasury firm led by Michael Saylor, has established a separate cash pool as part of its Digital Credit Capital Framework. This move is aimed at building up a reserve for future treasury purposes, including potential purchases of BTC and making dividend payments. The company's USD Reserve policy remains unchanged.

The 'USD Cash' pool currently stands at $1.59 billion, while the overall USD Reserve totals $5.10 billion. In a separate development, Strategy has continued its STRC buybacks, repurchasing just over 1.4 million shares worth approximately $136 million last week. This move is driven by the preferred security's subpar value of $96.55 compared to its par value of $100.

Notably, Strategy used the net proceeds from the recent MSTR stock sales for repurchasing STRC shares and increasing both the USD Cash pool and the overall USD Reserve. The company has maintained a consistent approach to buybacks as long as the STRC stock trades below its par value.