Strategy Inc's Stock Jumps on $1.59 Billion Cash Pool for Bitcoin Buys

Strategy Inc's shares jumped by 4.7% on Monday after the company announced it has set aside $1.59 billion for potential Bitcoin buys and other treasury operations.

The new component of its Digital Credit Capital Framework, called 'USD Cash,' provides a separate pool of U.S. dollar liquidity for general purposes, including acquiring Bitcoin, paying dividends on preferred stock, repurchasing securities, and repaying outstanding debt.

As of August 23, Strategy reported a USD Reserve balance of $5.10 billion and a USD Cash balance of $1.59 billion, with the company making no Bitcoin purchases or sales during the week.

The company has allocated funds from its at-the-market offering program to increase the USD Reserve and fill the new USD Cash account, which is now holding $136.4 million generated from repurchased STRC Stock shares.