Strategy (MSTR.US) establishes a new 1.59 billion “dollar cash pool”, adding potential ammunition to increase Bitcoin positions

The Zhitong Finance App learned that Michael Saylor's Strategy (MSTR.US) is introducing a new cash reserve tool to its balance sheet with the intention of retaining greater operational flexibility while the current financing model continues to be under pressure.

The company revealed on Monday that the newly established “dollar cash pool” will coexist with the original reserves and can be used to increase Bitcoin holdings, pay dividends and interest on debts on preferred shares, repurchase securities, and meet the operating needs of other businesses. Strategy revealed that the newly established cash reserves in US dollars currently amount to 1.59 billion US dollars.

Strategy stated in the document: “A dollar cash pool is a separately allocated pool of dollar liquidity funds. The company can reserve the funds for various future uses in line with Bitcoin Reserve Company's overall strategy, including but not limited to: increasing Bitcoin holdings, paying declared cash dividends and interest on outstanding debts, repurchasing the company's common or preferred shares, repaying or repurchasing the company's outstanding convertible notes, replenishing US dollar reserves, and other similar Bitcoin reserve company-related uses.”

As Bitcoin once approached $80,000 last week, Strategy's stock price and bonds both rose. However, its financing flywheel effect has not recovered, and valuation premiums have shrunk sharply compared to the previous cycle.

Strategy hasn't bought Bitcoin since the week of June 22nd. According to documents disclosed on Monday, the company has not carried out any cryptocurrency trading operations during the week up to yesterday.

As a result, Strategy's Bitcoin holdings remain at 840,447 BTC. The average purchase cost of these bitcoins is 75,385 US dollars each, and the total cost (including fees and expenses) is about 63.4 billion US dollars.

The previous week, Strategy raised about $2 billion by issuing common shares, and its original reserves have now reached 5.1 billion US dollars. Additionally, the company also repurchased approximately $136.4 million of Stretch preferred stock.

Affected by the above news, the company's stock price rose by about 3% in pre-market trading, while the price of Bitcoin hovered around 79,000 US dollars.