Strategy Raised $2 Billion but Didn’t Buy Bitcoin: $1.59 Billion Accumulated in Treasury

Between August 17-23, Strategy raised $2 billion from the sale of MSTR shares while establishing a new $1.59 billion cash pool; the company did not purchase Bitcoin during the same week, and its balance remained at 840,447 BTC.

Strategy, formerly known as MicroStrategy, generated net proceeds of $2,006.5 million by selling 18,261,118 MSTR shares in one week. Wu Blockchain reported the company’s capital allocation plan based on an update in the SEC filing.

Strategy used $136.4 million of the proceeds to repurchase STRC preferred shares. Preferred stock is known as a type of share that takes priority over common shares in profit distributions. The company also added $300 million to its existing USD Reserve account. A new USD Cash pool was created with the remaining amount.

Strategy’s Dollar Reserves Reached $5.10 Billion

As of August 23, the size of the USD Cash pool reached $1.59 billion. On the same date, the company’s USD Reserve account also rose to $5.10 billion. The new pool was defined as a resource that can be used within Strategy’s flexible Bitcoin treasury.

Potential use cases for this resource include Bitcoin purchases, debt repayments, and share buybacks. However, the company did not conduct any Bitcoin purchases or sales during the week of August 17-23. Thus, its total Bitcoin holdings remained unchanged at 840,447 BTC.