Strategy sells $2 billion in MSTR shares, makes no bitcoin purchases, establishes $1.6 billion ‘USD Cash’ pool

Michael Saylor's Strategy has allocated approximately $1.6 billion in cash to support future treasury operations, as revealed in a recent regulatory filing. This cash pool, referred to as the USD Cash, differs from an earlier reserve created for dividends on preferred stock and interest on outstanding debt. The new liquidity pool offers more flexibility and can be utilized for bitcoin acquisitions, share buybacks, and other corporate activities.

Additionally, it may assist Strategy in managing potential downturns in the bitcoin market, enabling the company to maintain cash reserves while continuing its strategy of purchasing bitcoin. This development follows a strong week for bitcoin, which saw a nearly 13% increase over the past five trading sessions. Bitcoin prices surged past $70,000 for the first time since June.

The move also comes after the U.S. Treasury Department doubled buyback sizes for long-duration debt, which has boosted risk assets, including cryptocurrencies. Despite recent gains, bitcoin is still far from its record highs reached during a significant bull run last year.