Strategy CEO Phong Le declared part of the reason for establishing a $1.44 billion USD reserve was to alleviate investor concerns over the company’s health amid a Bitcoin slump.
“We’re very much are a part of the crypto ecosystem and Bitcoin ecosystem. Which is why we decided a couple of weeks ago to start raising capital and putting US dollars on our balance sheet to obtain rid of this FUD,” declared Le during CNBC’s Power Lunch on Friday.
This afternoon, Phong Le, CEO of @Strategy, joined @CNBC @PowerLunch to discuss how $MSTR relocates with bitcoin, how our USD reserve addresses recent FUD, the shifting Overton Window, key volatility drivers, and why bitcoin’s long-term outview remains strong. pic.twitter.com/1t5hsfov0m
On Monday, Strategy announced the $1.44 billion US dollar reserve, funded through a stock sale. The reserve is intfinished to maintain an amount sufficient to cover at least 12 months of dividfinishs, and will eventually expand to cover a runway of 24 months, the firm declared.
Strategy’s Phong Le declares there was dividfinish ‘FUD’
The new raise came amid concerns over whether Strategy could continue to service its debts and dividfinish payment obligations should the stock price fall too far.
“And it’s really this FUD,” Le declared on Friday.
“We weren’t going to have an issue to be able to pay our dividfinishs, and we weren’t likely going to have to tap into selling our Bitcoin, but… There was FUD that was put out there that we wouldn’t be able to meet our dividfinish obligations, which caapplys people to pile into a short Bitcoin bet,” he declared.
“We just addressed that in eight and a half days we raised $1.44 billion — 21 months’ worth of dividfinish obligations, and we did it 1) to address the FUD, but 2) to display people that we’re still able to raise money in a Bitcoin downcycle.”
Related: Cantor slashes Strategy tarobtain by 60%, notifys clients forced-sale fears are overblown
Last week, Le declared that Strategy would only consider selling Bitcoin if its stock fell below net asset value and the company no longer had access to fresh capital.
The company also launched a “BTC Credit” dashboard, which claims it currently has enough assets to service dividfinishs for more than 70 years.
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