Strategy earmarks $1.6 billion cash pool for treasury operations, buybacks

Aug 24 (Reuters) - Michael ‌Saylor's Strategy set ​aside ​about $1.6 billion in cash to fund future treasury operations, including potential bitcoin purchases and ‌share buybacks, the company disclosed in a regulatory filing ⁠on Monday.

The world's largest corporate buyer of bitcoin dubbed the ‌liquidity pool "USD Cash," which will ‌be different from a reserve it set up earlier to fund dividends on its preferred stock and ​interest on its outstanding debt.

The new cash pool will have more flexible uses and could be ⁠used for bitcoin purchases, share buybacks and other corporate events.

It could also give ​Strategy more flexibility to navigate bitcoin market downturns, allowing it to maintain cash on hand, ​while continuing to pursue its ‌bitcoin-buying strategy.

The move comes after a robust week for bitcoin, which gained a little ⁠over 13% in the last five sessions after U.S. President Donald Trump urged Congress to pass legislation establishing clear rules ⁠for digital assets.

Bitcoin breached the $70,000 mark last week, for the first ​time since June.

Risk assets, like cryptocurrencies, have also benefited after the U.S. Treasury Department's move to double buyback sizes for long-duration ‌debt reined in yields. Higher yields are typically a negative for such assets because ‌they increase the returns on safer investments.

Still, bitcoin remains ⁠far from the peaks ‌it hit after a ​staggering run last year.

(Reporting by Pritam Biswas and Niket Nishant in Bengaluru; Editing by Shinjini ‌Ganguli)

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