Strategy has again delayed additional bitcoin purchases and created a separate $1.59 billion dollar cash reserve that it could use for future bitcoin buying and other purposes.

Bitcoin Magazine reported on Aug. 24 that Nasdaq-listed Strategy said in a recent filing it increased its existing cash buffer to $5.1 billion and also created a separate $1.59 billion “USD Cash” pool.

The move comes as Strategy has not bought additional bitcoin since June. The company has recently put more weight on share buybacks and securing liquidity than on buying bitcoin, and it has also sold some bitcoin.

The newly created USD Cash is a separate dollar liquidity pool, distinct from ordinary corporate operating funds. Strategy said it could use the money for its standard bitcoin treasury strategy in the future.

Its use is not limited to buying bitcoin. The filing says it can be used for bitcoin purchases, cash dividends on preferred shares, interest payments on existing debt, buybacks of common and preferred shares, repayment or redemption of convertible bonds, and expanding dollar reserves.

The market is therefore not interpreting the move simply as a halt to bitcoin buying. Strategy has said a share buyback plan approved in July is not a retreat from its bitcoin buying strategy but a step to strengthen its balance sheet. Strategy Chief Executive Officer and President Phong Le (퐁 리) has also said the company will remain a long-term bitcoin buyer.

Fundraising and shareholder returns are also proceeding at the same time. Strategy sold about $2 billion worth of common stock last week and bought back $136.4 million worth of Stretch preferred shares. The newly created cash pool is also seen as an extension of that capital management strategy.

The stock also rose. Strategy shares traded higher on the morning of Aug. 24 in New York. With bitcoin prices rising recently, the company’s shares also showed strength. Bitcoin has gained about 25 percent over the past seven days and traded around $79,031.

Strategy began buying bitcoin in 2020 as a way to protect shareholder returns. Previously known as MicroStrategy before its name change, the company has since used leverage to put about $64 billion into bitcoin purchases and now holds 844,447 BTC. Based on the current price, the value of its bitcoin holdings totals about $66.4 billion. It also maintains its status as the company with the largest bitcoin holdings.

Market attention is expected to focus on when the newly secured $1.59 billion in dollar liquidity will actually be converted into bitcoin purchases.

The current USD Cash is not dedicated solely to buying bitcoin. As it is designed for use in dividends, debt management and share buybacks as well, a key point to watch will be how Strategy prioritises allocating the funds among future bitcoin purchases, shareholder returns and liquidity.