MicroStrategy Inc. has established a $1.59 billion USD cash pool within its Digital Credit Capital Framework, the company said on Aug. 24, citing data as of Aug. 23. The liquidity reserve is designed to provide management with additional flexibility to acquire bitcoin, service debt obligations, or repurchase stock without tapping its existing $5.10 billion USD Reserve, which remains reserved for preferred stock dividends and interest payments.
The company reported no bitcoin purchases or sales during the week ended Aug. 23. MicroStrategy’s total bitcoin holdings stood at 840,447 coins, acquired at an aggregate cost of approximately $63.36 billion, with an average purchase price of $75,385 per bitcoin.
During the same period, MicroStrategy sold 18.26 million Class A common shares under its at-the-market equity program, generating net proceeds of about $2.01 billion. Of these proceeds, $136.4 million was used to repurchase 1.43 million shares of its Series A convertible preferred stock, while $300 million was allocated to the USD Reserve. The remaining funds were directed to the new USD Cash account.
The firm also disclosed $516.6 million in remaining availability under its Digital Credit Securities Repurchase Program and $1.0 billion under a separate common stock repurchase program as of the filing date. The USD Cash pool is intended to mitigate risks associated with market dislocations in bitcoin or broader securities markets, according to the company’s filing.
