Strategy announced a new $1.59 billion pool of Bitcoin purchases

Strategy announced the establishment of a $1.59 billion cash pool for Bitcoin purchases.

Strategy, currently the world's largest corporate Bitcoin holder, has notified the U.S. Securities and Exchange Commission (SEC) that it has established a $1.59 billion pool of funds that the company can use to purchase Bitcoin at its discretion. The company, led by Michael Siler, disclosed the new reserve to the SEC on August 24, 2026. Subject to the guidance of the board of directors, the pool of funds can also be used for dividends, share buybacks or debt repayment as needed.

Detailed explanation of the dollar reserve strategy

Strategy calls this new fund its "dollar cash" account. The fund is different from the company's main "dollar reserve", which was launched at the end of June 2026 as part of its digital credit capital framework. Records show that as of August 23, the U.S. dollar cash account held US$1.59 billion, while long-standing U.S. dollar reserves held US$5.1 billion, bringing the company's consolidated cash balance to US$6.69 billion.

The key difference between the two reserves is their permitted use. The original $5.1 billion reserve was used only to pay dividends and interest on debt to preferred shareholders. In contrast, the $1.59 billion U.S. dollar cash account provides the company with greater flexibility. Funds can be used to purchase bitcoins, pay dividends and interest, buy back MSTR or preferred shares, redeem or repay convertible bonds, or replenish the dollar reserve itself.

Strategy's board of directors has the flexibility to allocate resources for dividend payments, share buybacks and Bitcoin accumulation based on current market conditions and company goals.

Recent Financing and Fund Allocation

During the week ended August 23, Strategy confirmed that it had not sold any bitcoins. The company issued 18,261,118 shares of MSTR common stock through its market-to-market offering program, raising approximately US$2 billion. The proceeds were distributed as follows: US$136.4 million was used to repurchase 1,431,212 STRC preferred shares, US$300 million was allocated to existing U.S. dollar reserves, and US$1.57 billion was injected into new U.S. dollar cash accounts.

Under the Digital Credit Capital Framework, the board is authorized to allocate an additional US$516.6 million for STRC repurchases at its discretion. Another authorization, which allows up to $1 billion for the repurchase of MSTR common stock, remains unutilized.

Bitcoin holdings and market background

Strategy did not make any Bitcoin acquisitions in the week ended August 23; its most recent purchase occurred in June, as stated in its most recently filed Form 8-K. The company currently holds 840,447 bitcoins, with a total acquisition cost of US$63.36 billion and an average price of US$75,385 per bitcoin. This amount represents approximately 4% of all bitcoins in circulation, and the company reports extremely low net leverage.

The decision to increase cash reserves came after a period of volatility in the stock and cryptocurrency markets. The company's floating-rate preferred stock, STRC, fell to $71.25 at the end of June, before recovering to about $95 at the end of August. Industry observers had previously speculated that increasing pressure on preferred shares could force Strategy to sell Bitcoin to meet its repayment obligations. However, the company resisted the operation and instead chose to strengthen its liquidity position.

As Bitcoin prices topped $77,000, Strategy's Bitcoin portfolio turned positive for the first time in about three months. During the same period, MSTR shares rose strongly, closing at $119.25 after gaining about 28% in the week of August 21. In pre-market trading on August 24, the stock rose further to nearly $123.

Wall Street's evolution of digital assets

The aggressive management and diversification of funds by major players like Strategy reflects a broader transformation of capital markets. While traditional finance relies on brokers to facilitate trading and holding of assets, Wall Street is increasingly exploring Web3 technology. Investors are starting to use the platform to manage shares of major U.S. company stocks, gold and silver directly in their cryptocurrency wallets. This process, known as real-world asset (RWA) tokenization, allows users to hold assets themselves and benefit from instant price discovery without relying on intermediaries.