Strategy CEO Phong Le said that the recently created cash reserve of $1.44 billion aims to alleviate investor concerns regarding its capacity to withstand a sharp decline in Bitcoin. In an interview on CNBC’s Power Lunch, Le stated that the move came after months of speculation about the company’s ability to cover its dividend and […]Strategy CEO Phong Le said that the recently created cash reserve of $1.44 billion aims to alleviate investor concerns regarding its capacity to withstand a sharp decline in Bitcoin. In an interview on CNBC’s Power Lunch, Le stated that the move came after months of speculation about the company’s ability to cover its dividend and […]

Strategy CEO Reveals $1.44B Cash Reserve to Calm Bitcoin Slump Fears

2025/12/07 18:00
  • Strategy’s $1.44B cash reserve aims to reassure investors amid Bitcoin downturn fears.
  • CEO Phong Le says the reserve gives flexibility, avoiding Bitcoin sales in volatile markets.
  • Company shifts to a dual-reserve model, reducing BTC acquisitions to prepare for a bear market.

Strategy CEO Phong Le said that the recently created cash reserve of $1.44 billion aims to alleviate investor concerns regarding its capacity to withstand a sharp decline in Bitcoin. In an interview on CNBC’s Power Lunch, Le stated that the move came after months of speculation about the company’s ability to cover its dividend and debt commitments in case of a deterioration in market conditions.

The company’s severe embeddedness in the crypto and Bitcoin ecosystems has led to speculation about its liquidity. Le stated that a few weeks ago, the company decided to begin taking in capital and put US dollars in its balance sheet to remove this FUD.

Strategy’s Plan to Maintain Dividend Payments Amid Bitcoin Volatility

The reserve, announced on Monday and funded by a stock sale, is intended to accommodate at least 12 months of dividend payouts, with the ambition to increase that buffer to 24 months. The company emphasized that a stock-funded reserve gives Strategy flexibility, allowing it to avoid the requirement to sell any Bitcoin in a volatile market.

The focus on the stability of the dividends at Strategy had been heightened in recent weeks when Bitcoin retreated towards its high point. Le acknowledged the market speculation but rejected it as exaggerated. “We would easily pay dividends, and we probably would not have to sell our Bitcoin,” he said.

However, people were spreading FUD that the company would fail to meet its dividend requirements, and thus people added to their short positions in Bitcoin.

Also Read: Strategy Buys Another 130 BTC as Michael Saylor Signals Renewed Accumulation

Strategy Raises $1.44B to Counter Market FUD

According to the CEO, the ability to raise funds within eight and a half days, amounting to $1.44 billion, was a direct reaction to the firm’s capability to raise funds even in a recession. Le stated, “We did it to deal with the FUD and to demonstrate that we will be able to continue raising funds even when Bitcoin is under pressure.”

Le had said last week that Strategy would only sell Bitcoin when the stock dropped below its net asset value and the company could no longer raise additional funds. Additionally, Strategy has introduced a new BTC Credit dashboard, which purports to reveal that the firm has sufficient assets to pay dividends exceeding 70 years.

According to the report, Strategy has shifted their long-standing strategy of buying Bitcoin at any price to a two-reserve treasury setup, buying longer-term BTC and building a dollar reserve.

The move comes after the company dropped its acquisition rate from a peak of 134,000 BTC per month in 2024 to only 9,100 BTC in November, indicating that the company was preparing for a potentially prolonged bear market. However, the company remains among the biggest Bitcoin holders in the world, and it has around 650,000 BTC on its balance sheet.

Also Read: Bitcoin Holds as Whales Accumulate, Targeting a Breakout Above $100,000

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