MicroStrategy Inc. shares advanced 4.7% on Monday after the company earmarked $1.59 billion in cash for potential Bitcoin purchases and other treasury activities.
The firm introduced a new component to its Digital Credit Capital Framework, labeled "USD Cash," which will serve as a dedicated pool of U.S. dollar liquidity for Bitcoin Treasury operations. This includes funding for Bitcoin acquisitions, preferred stock dividends, security repurchases, and debt repayments.
As of August 23, MicroStrategy reported a $5.10 billion USD Reserve balance and a $1.59 billion USD Cash balance. The company also disclosed that it sold 18.26 million shares of its stock through an at-the-market offering program between August 17 and August 23, generating net proceeds of $2.01 billion. Of these proceeds, $136.4 million was used to repurchase STRC stock, $300 million was added to the USD Reserve, and the remaining funds were allocated to the USD Cash account.
MicroStrategy held 840,447 Bitcoin as of August 23, with an aggregate purchase price of $63.36 billion and an average purchase price of $75,385 per Bitcoin. No Bitcoin transactions were executed during the week.
The company also reported repurchasing 1.43 million shares of STRC stock for $136.4 million under its Digital Credit Securities Repurchase Program. Approximately $516.6 million remains available under this program, while $1.0 billion is still available under the broader MSTR stock repurchase initiative.
