Strategy, the largest corporate bitcoin holder, said it had built its USD Reserve to $5.1 billion and set aside a separate $1.59 billion cash pool for future deployment, which could include buying more bitcoin. The company also repurchased $136.4 million of its Stretch preferred shares, according to a filing.
Where the cash comes from
Last week Strategy sold about $2 billion in common shares. The company said the new cash pool may be used for dividends, interest payments, stock repurchases, convertible note repayment, or for increasing the USD Reserve. The buyback of preferred shares fits into that plan.
A buyback for strength
The repurchase of $136.4 million in Stretch preferred stock was part of a share buyback program approved in July. The company said the plan is meant to strengthen its balance sheet, not to step back from bitcoin.
The bitcoin pile
CEO Phong Le said Strategy intends to remain a long-term bitcoin buyer. The company holds 840,447 BTC, worth about $66.4 billion, making it the largest corporate holder. That's roughly 4% of the total bitcoin supply, and Strategy has spent nearly $64 billion on bitcoin since 2020.
Balance sheet at a glance
As of Aug. 23, Strategy had roughly zero net leverage. Shares were trading higher on Monday after the disclosure.
