Strategy Pauses Bitcoin Buys, Launches $1.6B Cash Pool After $2B Raise

Key facts

• MicroStrategy raised approximately $2 billion through common stock sales.
• The company paused new Bitcoin purchases but maintained its holdings of 840,447 BTC.
• A new USD Cash pool of $1.59 billion was established.
• Total cash reserves across two pools reached $6.69 billion.
• MicroStrategy repurchased over $136 million worth of its common stock.

MicroStrategy, the largest public company holding Bitcoin, has paused new Bitcoin purchases while maintaining its existing holdings of 840,447 BTC. This decision follows the company's successful raise of approximately $2 billion through the sale of its common stock. The funds were allocated towards repurchasing preferred shares, increasing its US dollar reserve, and establishing a new $1.59 billion cash pool. This new cash account is intended to provide management with greater flexibility for various purposes, including potential Bitcoin acquisitions, dividend payments, debt servicing, and share repurchases. As of Sunday, MicroStrategy reported a total of $6.69 billion in cash reserves across its US dollar reserve and the newly launched cash account. The company's Bitcoin holdings were acquired for $63.36 billion at an average price of $75,385 per Bitcoin. MicroStrategy also continued its share repurchase program, buying back over $136 million worth of its common stock, which trades below its par value.