MicroStrategy’s shares rose 4.7% on Monday after the company disclosed it had reserved $1.59 billion in cash for potential Bitcoin acquisitions, part of a broader liquidity strategy.
The Bitcoin-focused software firm said the new cash reserve, designated as ‘USD Cash’ within its Digital Credit Capital Framework, supplements its existing $5.10 billion USD Reserve balance. The USD Reserve remains earmarked for preferred stock dividends and debt interest payments, while the additional liquidity pool can be deployed for general treasury purposes, including Bitcoin purchases, the company said.
The announcement follows a $2.01 billion equity sale completed last week, during which MicroStrategy sold 18.26 million shares. Proceeds were allocated with $136.4 million used to repurchase 1.43 million Series A convertible preferred shares (STRC), $300 million added to the USD Reserve, and the remainder—approximately $1.59 billion—directed to the new USD Cash account.
MicroStrategy’s capital allocation strategy now includes $516.6 million remaining under its Digital Credit Securities repurchase program and $1.0 billion available under its common share buyback authorization. The company held 840,447 bitcoins as of August 23, acquired at an average price of $75,385 per coin, with a total cost basis of $63.36 billion. No Bitcoin transactions were executed during the week ending August 23.
The newly introduced USD Cash component reflects MicroStrategy’s evolving treasury framework, designed to enhance flexibility in managing its Bitcoin-centric financial structure while maintaining liquidity for operational and strategic needs.
