Strategy Inc Adds US$1.59 Billion Cash Reserve for Bitcoin Purchases

Strategy Inc, led by Michael Saylor, has added a new pool of cash to its balance sheet toolkit as part of an effort to preserve flexibility. The USD Cash pool currently holds US$1.59 billion and can be used to buy Bitcoin, fund preferred-stock dividends and debt payments, repurchase securities or meet other corporate needs.

The original reserve, now US$5.1 billion, may only be used to support the payment of dividends on Strategy's preferred stock and interest on outstanding indebtedness. Any other use requires board authorisation.

Nicolai Sondergaard, a senior research analyst at Nansen, noted that the new USD Cash pool gives Strategy more time and optionality but does not remove underlying obligations.