Strategy Creates New $1.59B Reserve for Bitcoin

Strategy, a software company turned Bitcoin treasury, has created a new reserve called USD Cash to fund its investments. The pool is valued at $1.59 billion and can be used for various corporate needs, including buying Bitcoin, paying dividends, servicing debt, or repurchasing securities.

The move comes as the company's main capital-raising machine slows down, and it has sold about $2 billion of common stock in recent weeks to keep its business running. Strategy also spent $136.4 million to buy back its Stretch preferred shares, a process made possible by selling Bitcoin.

As of the latest report, Strategy has not acquired any Bitcoin since June 22, marking a shift for a company that once seemed to buy the dip every week. The new pool gives the company more flexibility, but it does not remove underlying obligations, according to Nicolai Sondergaard, a senior analyst at Nansen.

The market initially shrugged off the news, with Strategy's shares climbing by up to 3% during the initial session. However, the share price has fallen roughly 66% over the last twelve months, and investors are waiting to see whether the new pool will translate into fresh Bitcoin purchases or a quieter path forward.