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Strategy CEO Phong Le states that the company’s newly established $1.44 billion cash reserve is intended to alleviate investor concerns regarding its capacity to endure a significant decline in Bitcoin.
Key Takeaways:
- Strategy has created a $1.44B cash reserve to mitigate investor worries about fulfilling dividend and debt responsibilities.
- The firm secured the funds in just eight and a half days, demonstrating its ability to attract capital without liquidating any Bitcoin.
- Strategy indicates it will only contemplate selling BTC if its stock price falls below net asset value.
During an appearance on CNBC’s Power Lunch, Le mentioned that this initiative followed weeks of speculation regarding the firm’s ability to maintain its dividend and debt obligations should market conditions deteriorate.
“We’re very much integrated into the crypto ecosystem and Bitcoin ecosystem,” Le remarked. “This is why we decided a couple of weeks ago to initiate capital raising and add US dollars to our balance sheet to dispel this FUD.”
Strategy Establishes Cash Reserve to Prevent Bitcoin Sales During Market Decline
The reserve, revealed on Monday and financed through a stock sale, aims to ensure at least 12 months of dividend payments, with intentions to extend that buffer to 24 months.
The company highlighted that the stock-funded accumulation provides Strategy with flexibility without necessitating the sale of any Bitcoin during a challenging market phase.
Concerns regarding Strategy’s dividend reliability had intensified in recent weeks as Bitcoin declined from its peak values.
Le acknowledged the market speculation but characterized it as overstated. “We weren’t going to face issues with dividend payments, and we weren’t likely to need to sell our Bitcoin,” he stated.
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“However, there was FUD circulating that suggested we wouldn’t be able to fulfill our dividend commitments, which led some to engage in short Bitcoin positions.”
This afternoon, Phong Le, CEO of @Strategy, joined @CNBC @PowerLunch to discuss how $MSTR interacts with bitcoin, how our USD reserve addresses recent FUD, the shifting Overton Window, key volatility drivers, and why bitcoin’s long-term outlook remains strong. pic.twitter.com/1t5hsfov0m
— Strategy (@Strategy) December 5, 2025
The CEO noted that raising $1.44 billion in just eight and a half days was a direct response, illustrating the firm’s capability to attract capital even during a downturn.
“We did it to counter the FUD, and to demonstrate that we can still raise funds when Bitcoin is under pressure.”
Last week, Le mentioned that Strategy would only consider selling Bitcoin if the stock fell below net asset value and the company could no longer secure additional funding.
Strategy has also launched a new “BTC Credit” dashboard, which it claims shows the company possesses sufficient assets to cover dividends for over 70 years.
Strategy Implements Dual-Reserve Model as BTC Acquisition Slows
As reported, Strategy has transitioned from its previous “buy Bitcoin at all costs” strategy to a dual-reserve treasury model that combines long-term BTC holdings with an increasing dollar reserve.
This shift follows a significant reduction in the firm’s accumulation rate, from 134,000 BTC per month at its peak in 2024 to just 9,100 BTC in November, indicating preparation for a potentially extended bear market.
Despite the slowdown, the company continues to be one of the largest Bitcoin holders globally, with approximately 650,000 BTC on its balance sheet.
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