Strategy Pauses BTC Purchases, Launches $1.59 Billion Cash Pool

Strategy, the world's largest public company holding Bitcoin, has paused new purchases of BTC for now. The decision came after raising $2 billion through common stock sales last week via its at-the-market (ATM) offering program. Between August 17 and August 23, Strategy sold 18.26 million MSTR shares, which is about half the number of shares it had initially planned to sell.

The company used some of the $2 billion raised to repurchase 1.43 million STRC preferred shares for $136.4 million, added $300 million to its US dollar reserve, and directed the remaining proceeds to a newly launched $1.59 billion cash account. Strategy's total cash across both pools now stands at $6.69 billion.

The new cash pool gives management more flexibility to respond to market conditions and can be used for various purposes such as Bitcoin purchases, preferred-stock dividends, debt payments, or securities repurchases. As of Sunday, Strategy held 840,447 BTC in its treasury, acquired for a total of $63.36 billion at an average price of $75,385 per Bitcoin.