Strategy (MSTR.US) establishes a new 1.59 billions USD "cash pool," adding potential ammunition to increase its bitcoin holdings.
Strategy is introducing a new cash reserve instrument to its balance sheet, aiming to retain greater operational flexibility as the current financing model continues to face pressure.
According to Golden Ten Data APP, Strategy (MSTR.US) under Michael Saylor is introducing a new cash reserve tool to its balance sheet, aiming to retain greater operational flexibility amid continued pressure on its current financing model.
The company disclosed on Monday that the newly established "USD cash pool" will coexist with its original reserves and can be used to acquire more Bitcoin, pay preferred stock dividends and debt interest, repurchase securities, and meet other corporate needs. Strategy revealed that the USD cash reserve currently totals 1.59 billion USD.
Strategy stated in the document: "The USD cash pool is a separately allocated dollar liquidity fund that the company can retain for future uses consistent with the overall strategy of a Bitcoin reserve company, including but not limited to: acquiring more Bitcoin, paying declared cash dividends on Stretch preferred stock and outstanding debt interest, repurchasing the company's common or preferred shares, repaying or repurchasing the company’s outstanding convertible notes, supplementing USD reserves, and other similar purposes related to a Bitcoin reserve company."
As Bitcoin briefly approached 80,000 USD last week, Strategy's stock and bonds both rose. However, its financing flywheel effect has not yet recovered, and valuation premiums remain significantly lower compared to the previous cycle.
Since the week of June 22, Strategy has not purchased any additional Bitcoin. According to Monday's disclosed documents, the company also did not conduct any cryptocurrency transactions during the past week.
Therefore, Strategy's Bitcoin holdings remain at 840,447 BTC, with an average purchase cost of 75,385 USD per coin, and a total cost (including fees and expenses) of about 63.4 billion USD.
In the previous week, Strategy raised about 2 billion USD through a common stock issuance, bringing its original reserves to 5.1 billion USD. Additionally, the company repurchased approximately 136.4 million USD of Stretch preferred stock.
As a result of the news, the company’s share price rose about 3% in pre-market trading, while the price of Bitcoin hovered around 79,000 USD.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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