Michael Saylor's Strategy (MSTR.US) is adding a new cash management tool to its balance sheet, aiming to preserve greater operational flexibility as its current financing model faces ongoing pressure. The company disclosed on Monday that it has established a "dollar cash pool" that will coexist with its existing reserves, potentially serving to acquire additional bitcoin, cover preferred stock dividends and debt interest, repurchase securities, and meet other corporate operational needs. Strategy revealed that this newly established dollar cash reserve currently stands at $1.59 billion.
In the filing, Strategy explained: "The dollar cash pool is a separately allocated dollar liquidity pool that the company may retain for future use in various purposes aligned with the overall strategy of a bitcoin treasury company, including but not limited to: acquiring additional bitcoin, paying declared cash dividends on Stretch preferred stock and interest on outstanding debt, repurchasing common or preferred shares, repaying or buying back outstanding convertible notes, replenishing dollar reserves, and other similar bitcoin treasury company-related uses."
As bitcoin approached the $80,000 mark last week, both Strategy's stock and bonds experienced gains. However, its financing flywheel effect has yet to recover, with the valuation premium still significantly reduced compared to the previous cycle. Since the week ending June 22, Strategy has not purchased any additional bitcoin. According to Monday's filing, the company conducted no cryptocurrency transactions during the week ending yesterday. Consequently, Strategy's bitcoin holdings remain steady at 840,447 BTC, with an average acquisition cost of $75,385 per coin, totaling approximately $63.4 billion in aggregate cost including fees and expenses.
In the prior week, Strategy raised roughly $2 billion through a common stock offering, bringing its original reserve balance to approximately $5.1 billion. Additionally, the company repurchased about $136.4 million in Stretch preferred shares. In response to these developments, the company's shares rose approximately 3% in pre-market trading, while bitcoin hovered near the $79,000 level.