Strategy adds $1.59 billion in cash liquidity without changing bitcoin holdings

Strategy created a $1.59 billion USD Cash pool without changing its bitcoin holdings. Strategy raised about $2 billion through the sale of 18.26 million common shares last week. Strategy allocated $300 million of the proceeds to its USD Reserve. Strategy used $136.4 million to repurchase 1.43 million variable-rate preferred shares known as STRC. Strategy held $5.1 billion in its USD Reserve as of Aug. 23. Strategy held $1.59 billion in USD Cash at that time. The combined dollar liquidity totaled $6.69 billion. The USD Reserve supports dividend payments on preferred stock. The USD Reserve also supports interest payments on outstanding debt. The USD Cash pool can be used to acquire bitcoin. The pool can be used to repurchase MSTR or preferred shares. The pool can be used to repay convertible notes. The pool can increase the USD Reserve or fund other corporate purposes. Strategy said the added flexibility would help management respond more quickly to market conditions.