Strategy sets up $1.59 billion cash pool to buy Bitcoin

Investing.com -- Strategy Inc. announced Monday it established a new cash pool of $1.59 billion that can be used to purchase Bitcoin, pay preferred stock dividends and debt obligations, repurchase securities, or meet other corporate needs.

The company said the USD Cash will operate alongside its existing reserve, which now stands at $5.1 billion. Strategy also disclosed it repurchased $136 million of its Stretch preferred shares.

Michael Saylor, the company's founder, posted on X that Strategy holds approximately 4% of the total Bitcoin supply and has roughly 0% net leverage as of August 23. The company did not buy or sell any Bitcoin in the week ended Sunday, according to a Monday filing.

Strategy sold about $2 billion in common shares over the previous week. The company has not purchased Bitcoin since the seven days ended June 22.

Saylor said the USD Cash "enhances our Digital Credit Capital Framework, and is separately designated for general Bitcoin Treasury Company purposes, including acquiring BTC, paying preferred dividends & interest, repurchasing MSTR/preferred stock, repaying converts, and increasing USD Reserve."

The company's shares and debt securities gained last week as Bitcoin approached $80,000. Strategy shares traded about 2.5% higher in pre-market on Monday.

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