MicroStrategy Inc. said on Monday it had established a $1.59 billion USD cash pool as part of its Digital Credit Capital Framework, increasing its liquidity reserves to $5.10 billion as of Aug. 23.
The company, which holds 840,447 bitcoin purchased for approximately $63.36 billion at an average price of $75,385 per coin, said the new cash pool would provide management with added flexibility to deploy capital for bitcoin acquisitions, dividend payments, debt service or stock buybacks.
During the week ending Aug. 23, MicroStrategy sold 18.26 million shares of its Class A common stock through an at-the-market offering, generating net proceeds of about $2.01 billion. Of that total, $136.4 million was used to repurchase 1.43 million shares of its STRC preferred stock, while $300 million was allocated to boost the USD Reserve. The remaining funds were added to the newly created USD Cash account.
The company’s existing USD Reserve policy, which is earmarked solely for preferred stock dividends and debt interest, remains unchanged. MicroStrategy also retains $516.6 million in availability under its Digital Credit Securities Repurchase Program and $1.0 billion under a separate stock repurchase program.
No bitcoin transactions were executed during the period, and the firm’s aggregate holdings remained at 840,447 coins, according to an SEC filing dated Aug. 24.
