MSTR Stock Gains After Strategy Sets Up $1.59B ‘USD Cash’ Pool With Bitcoin Nearing $79K

The new pool is separate from the company’s $5.10 billion USD Reserve, which remains focused on preferred dividends and interest on debt.

• Strategy made no Bitcoin purchases or sales during the week and continued to hold 840,447 BTC.
• The company sold 18.26 million MSTR shares for $2.01 billion in net proceeds during the latest week.
• It used $136.4 million of those proceeds to repurchase STRC preferred shares and $300 million to increase its USD Reserve.

Michael Saylor’s Strategy (MSTR) announced on Monday that it has created a new $1.59 billion ‘USD Cash’ pool, which is separate from its existing USD Reserve, and did not make any fresh Bitcoin (BTC) purchases or sales.

In a filing with the Securities and Exchange Commission (SEC), Strategy said the additional flexibility should allow it to “respond more quickly to market conditions, including dislocations in the markets for bitcoin or Strategy's securities.”

Bitcoin’s price rose nearly 2% in the last 24 hours, to $78,900 from around $64,000 last week. The rally has put MSTR’s 840,447 BTC holdings, with an average acquisition price of $75,385, in the green. Meanwhile, MSTR stock gained over 3% in pre-market trade. 

On Stocktwits, retail sentiment around BTC and MSTR trended in ‘extremely bullish’ territory over the past day, accompanied by ‘extremely high’ levels of chatter. Both were among the top trending tickers on the platform at the time of writing.

Strategy’s New USD Cash Pool

Strategy said its new pool, called ‘USD Cash’, falls under the company’s Digital Credit Capital Framework. It’s separate from the company’s existing USD Reserve and can be used for a broader range of corporate purposes, including buying Bitcoin, paying preferred-stock dividends, servicing debt, repurchasing common or preferred shares, redeeming convertible notes or replenishing the USD Reserve.

The USD Reserve, meanwhile, is intended to cover preferred-stock dividends and interest payments. 

Strategy said its existing USD Reserve stood at $5.10 billion, while the new USD Cash pool held $1.59 billion. Together, the two pools provide the company with roughly $6.69 billion in liquidity.

Where Did Strategy Get The Money?

Strategy also disclosed in its filing that it sold 18.26 million MSTR shares through its at-the-market program (ATM) over the past week. The sales generated $2.01 billion in net proceeds.

Of that amount, $136.4 million was used to repurchase 1.43 million ‘Stretch’ preferred stock (STRC), while another $300 million went toward the USD Reserve. The remaining proceeds were used to build the new USD Cash pool.

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