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Aug 24 (Reuters) – Michael Saylor’s <a href="https://xpertsstudio.com/strategy-raises-2-billion-as-bitcoins-24-surge-turns-holdings-profitable/” title=”Strategy Raises $2 Billion as Bitcoin's 24% Surge Turns Holdings Profitable”>Strategy set aside about $1.6 billion in cash to fund future treasury operations, including potential bitcoin purchases and share buybacks, the company disclosed in a regulatory filing on Monday.
The world’s largest corporate buyer of bitcoin dubbed the liquidity pool “USD Cash,” which will be different from a reserve it set up earlier to fund dividends on its preferred stock and interest on its outstanding debt.
The new cash pool will have more flexible uses and could be used for bitcoin purchases, share buybacks and other corporate events.
It could also give Strategy more flexibility to navigate bitcoin market downturns, allowing it to maintain cash on hand, while continuing to pursue its bitcoin-buying strategy.
The move comes after a robust week for bitcoin, which gained a little over 13% in the last five sessions after U.S. President Donald Trump urged Congress to pass legislation establishing clear rules for digital assets.
Bitcoin breached the $70,000 mark last week, for the first time since June.
Risk assets, like cryptocurrencies, have also benefited after the U.S. Treasury Department’s move to double buyback sizes for long-duration debt reined in yields. Higher yields are typically a negative for such assets because they increase the returns on safer investments.
Still, bitcoin remains far from the peaks it hit after a staggering run last year.
(Reporting by Pritam Biswas and Niket Nishant in Bengaluru; Editing by Shinjini Ganguli)
Source: finance.yahoo.com