Strategy again does not buy bitcoin, secures $1.59 billion cash reserve

Strategy has again delayed additional bitcoin purchases and created a separate $1.59 billion dollar cash reserve that it could use for future bitcoin buying and other purposes.

Bitcoin Magazine reported on Aug. 24 that Nasdaq-listed Strategy said in a recent filing it increased its existing cash buffer to $5.1 billion and also created a separate $1.59 billion “USD Cash” pool.

The move comes as Strategy has not bought additional bitcoin since June. The company has recently put more weight on share buybacks and securing liquidity than on buying bitcoin, and it has also sold some bitcoin.

The newly created USD Cash is a separate dollar liquidity pool, distinct from ordinary corporate operating funds. Strategy said it could use the money for its standard bitcoin treasury strategy in the future.

Its use is not limited to buying bitcoin. The filing says it can be used for bitcoin purchases, cash dividends on preferred shares, interest payments on existing debt, buybacks of common and preferred shares, repayment or redemption of convertible bonds, and expanding dollar reserves.

The market is therefore not interpreting the move simply as a halt to bitcoin buying. Strategy has said a share buyback plan approved in July is not a retreat from its bitcoin buying strategy but a step to strengthen its balance sheet. Strategy Chief Executive Officer and President Phong Le (퐁 리) has also said the company will remain a long-term bitcoin buyer.