Strategy Creates Fresh $1.59B Reserve for Bitcoin and More

Everyone knows Michael Saylor's company loves Bitcoin.

Strategy, the software company turned Bitcoin treasury, just gave itself a fresh pile of cash to play with.

The company announced it is setting up a new reserve called USD Cash, a pool of $1.59 billion that can fund Bitcoin purchases, pay preferred-stock dividends, service debt, repurchase securities, or handle other corporate needs. The move comes as the company's main capital-raising machine slows down.

A New Pool With a Lighter Lock

The new pool sits alongside an original reserve of $5.1 billion. The older reserve is strictly for paying preferred-stock dividends and servicing outstanding debt. If Strategy wants to use those funds for anything else, the board has to sign off first.

The new USD Cash pool has no such strings attached.

That extra flexibility matters because the old reserve came with rules. It was created under a capital framework Strategy introduced in June, and it was meant to keep the lights on while the company juggled its debts and its Bitcoin bets.

Why the Company Needed More Room

The timing is no accident. Strategy has been through a rough patch. The prolonged crypto downturn has left investors nervous about liquidity and the steady drip of new shares, a process known as shareholder dilution.