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Saturday Dec 6 2025 00:30
2 min
Strategy CEO Phong Le stated that a key reason for establishing a $1.44 billion USD reserve was to assuage investor anxieties concerning the company's financial stability during the ongoing Bitcoin slump. Le emphasized the reserve's importance in quelling negative rumors (FUD) surrounding the company's ability to meet its obligations.
Speaking on CNBC, Le highlighted that the company is deeply embedded within the cryptocurrency ecosystem, particularly Bitcoin. “Which is why we decided a few weeks ago to start raising capital and putting US dollars on our balance sheet to get rid of this FUD,” he explained.
Strategy announced the $1.44 billion USD reserve, funded through a stock sale. The reserve is designed to maintain a sufficient amount to cover at least 12 months of dividends and will eventually expand to cover a 24-month runway, according to the firm.
This move comes amidst concerns about Strategy's capacity to continue servicing its debts and dividend payment obligations should the stock price decline significantly. Le asserted that the company faced no immediate threat to its dividend payments and was unlikely to be forced to sell its Bitcoin holdings.
“We just addressed that in eight and a half days we raised $1.44 billion — 21 months’ worth of dividend obligations, and we did it 1) to address the FUD, but 2) to show people that we’re still able to raise money in a Bitcoin downcycle,” Le elaborated.
Last week, Le mentioned that Strategy would only consider selling Bitcoin if its stock price fell below net asset value and the company lost access to fresh capital. The company also launched a “BTC Credit” dashboard, which it claims currently holds sufficient assets to service dividends for over 70 years.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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Saturday, 6 December 2025
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Saturday, 6 December 2025
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