Strategy said it has created a separately designated dollar liquidity pool called USD Cash under its digital credit capital framework, adding a new layer of funding flexibility alongside its existing USD Reserve policy. The company said USD Cash can be used to buy Bitcoin, pay preferred stock dividends and debt interest, repurchase common or preferred shares, repay convertible notes, and increase dollar reserves for general Bitcoin treasury company purposes.
Strategy said its USD Reserve policy remains unchanged and continues to be earmarked specifically for preferred stock dividends and interest payments on outstanding debt. By contrast, USD Cash is intended as a supplemental pool that gives management more room to move capital quickly in response to market changes and price dislocations involving Bitcoin or the company’s securities.
As of Aug. 23, the company reported a USD Reserve balance of $5.1 billion and a USD Cash balance of $1.59 billion, with both figures including expected cash proceeds from ATM shares that had been sold but not yet settled. During the week of Aug. 17 to Aug. 23, Strategy sold 18,261,118 MSTR common shares through at-the-market issuance, generating net proceeds of $2.0065 billion. Of that amount, $136.4 million went to repurchase STRC preferred stock, $300 million was added to USD Reserve, and the rest was allocated to USD Cash. Strategy also said it made no Bitcoin purchases or sales during the week, leaving its holdings at 840,447 BTC.
Strategy said on Aug. 24 that it has established a separately designated dollar liquidity pool called USD Cash under its digital credit capital framework.
The company said the pool may be used to purchase Bitcoin, pay preferred stock dividends and debt interest, repurchase common or preferred shares, repay convertible notes, and increase dollar reserves for general Bitcoin treasury company purposes.
Strategy said its existing USD Reserve policy remains in place without change. That reserve continues to be dedicated specifically to supporting preferred stock dividend payments and interest payments on outstanding debt. USD Cash will serve as a supplemental pool intended to give management more flexibility in allocating capital and to help it respond more quickly to market changes and price dislocations involving Bitcoin or the company’s securities.
Dollar balances as of Aug. 23
As of Aug. 23, Strategy said its USD Reserve balance stood at $5.1 billion, while its USD Cash balance was $1.59 billion. The company added that both figures include expected cash proceeds from ATM shares that had been sold but had not yet settled.
ATM share sales brought in $2.0065 billion net last week
For the week from Aug. 17 through Aug. 23, Strategy said it sold only MSTR common stock through at-the-market issuance, totaling 18,261,118 shares. Net proceeds came to $2.0065 billion.
Of that amount, $136.4 million was used to repurchase STRC preferred stock, $300 million was allocated to increase USD Reserve, and the remaining proceeds were used to fund USD Cash.
Bitcoin holdings were unchanged
As of Aug. 23, the company held 840,447 BTC. Strategy said the total purchase cost was $63.36 billion, with an average purchase price of $75,385 per Bitcoin. The company said it did not buy or sell any Bitcoin during the week.
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