The world's largest corporate holder of Bitcoin, Strategy (NASDAQ: MSTR), has informed the U.S. Securities and Exchange Commission (SEC) about creating a $1.59 billion pool that it can spend on Bitcoin at any time it deems convenient.
The new cash reserve, which the company led by Saylor reported to the Securities and Exchange Commission on August 24, 2026, can be used for dividend payments, share buybacks, or debt repayment, depending on the board of directors' decision.
What is Strategy's new dollar reserve?
As part of its strategy, the new dollar reserve has been named 'USD Cash,' and it is distinct from the initial dollar reserve created under the Digital Credit Capital concept introduced in late June 2026.
As of August 23, Strategy's USD cash balance was $1.59 billion, and its USD reserves amounted to $5.10 billion. Collectively, the Saylor-led firm now has approximately $6.69 billion in cash funds.
The key difference between these two dollar portfolios lies in what management can actually do with each. The $5.10 billion in the company's USD reserve is specifically earmarked for paying dividends on preferred shares and interest on debt.
USD Cash, on the other hand, can be used for acquiring Bitcoin, dividend and interest payments, buying back MSTR common stock or preferred shares, redeeming or repurchasing convertible bonds, or even for replenishing the dollar reserves themselves, according to Strategy's 8-K filing.
Did Strategy sell any Bitcoin this week?
For the period ending last Friday and described by Strategy on Monday, August 24, 2026, the firm stated that it did not sell any Bitcoin. The $2 billion valuation the company planned to raise was obtained through the sale of 18,261,118 shares of MSTR common stock under a market offering program.
The raised funds were divided into three parts and allocated to three areas:
- $136.4 million allocated to repurchase 1,431,212 shares of the company's STRC preferred stock.
- $300 million to the U.S. reserve fund.
- $1.57 billion was directed to the new USD Cash line.
Under the provisions of the Digital Credit Capital Framework Program, Strategy still has the right to allocate an additional $516.6 million to repurchase STRC shares at the board of directors' discretion. A separate authorization for a $1 billion buyback of MSTR common stock remains unchanged.
When will Strategy resume buying Bitcoin?
During the week ending August 23, Strategy did not purchase any bitcoin, with the last purchase made back in June, as confirmed by the 8-K report. Its assets comprise 840,447 BTC acquired for a total of $63.36 billion at an average price of $75,385 per coin. This represents about 4% of all bitcoin, with the company reporting that its net credit leverage is practically zero.
The cash accumulation followed a challenging period. STRC, the variable-rate preferred shares Strategy relies on to raise funds at par value, fell to $71.25 at the end of June before recovering to around $95 by late August, according to data from bitcointreasuries.net. When bitcoin was in negative territory early in the summer, some observers warned that the company might be forced to sell off coins to cover its preferred share obligations.
Timing plays a role. Bitcoin rising above the $77,000 mark for the first time in three months returned the value of Strategy's portfolio above the level at which it was acquired. As Cryptopolitan reported, the uptrend saw MSTR shares close at $119.25 on August 21 after an approximately 28 percent weekly surge. According to Google Finance, on August 24, the shares were trading around $123 in pre-market.
