As the Bitcoin market enters another period of turbulence, remarks from Fong Lee, CEO of the US-based business intelligence company Strategy, have garnered significant attention within the crypto community. In an interview with Schwab Network, Lee stated the company’s cautious yet strategic stance, indicating that the possibility of selling their substantial Bitcoin reserves is not completely off the table. Nonetheless, he emphasized that Bitcoin remains a pivotal element in their long-term strategy.
Dividend Pressure: “We’ll Sell Bitcoin If Necessary”
In the interview, Fong Lee made it clear that the company’s priority is to secure dividend payments. Lee, stating, “The important thing is to continue paying dividends; selling Bitcoin is secondary,” also mentioned that even if the Bitcoin price drops by 50%, the company still has the financial capacity to cover dividend payments through Bitcoin assets until 2065.
According to Lee, this approach is essential to provide assurance to investors and strengthen the company’s financial sustainability. Strategy’s announcement earlier this week regarding a massive Bitcoin purchase was also motivated by internal financial stability indicators and market liquidity.
These statements have caught attention, particularly at a time when corporate investors are grappling with rising operational costs and dividend policies. For instance, Galaxy Digital recently announced a potential shift towards short-term Bitcoin evaluations due to increased cash demands. Such developments indicate a more dynamic approach by corporate entities towards their crypto asset portfolios.
MSCI Controversy and Allegations of Digital Asset Discrimination
Another critical topic addressed by Fong Lee was MSCI’s proposal to exclude companies heavily invested in digital assets from indexes. Strategy defended its stance by sending a letter to MSCI, denouncing the proposal as “discriminatory.” During the Schwab Network broadcast, Lee called the suggestion “misinformed” and “misguided.”
Lee highlighted structural prejudices against the crypto sector, stating, “It’s not healthy to conclude that digital assets are not a viable investment area so soon.” He believes Bitcoin still holds the potential for long-term value creation and that short-term volatility does not sway the company’s strategic vision.
Strategy’s commitment to crypto was underscored by Lee’s remarks, which expressed optimism about the Bitcoin market over the past five years. His statement, “We don’t think week to week; we believe Bitcoin will continue to strengthen in the long run,” resonated widely in the sector.
In a parallel development, the Canadian financial giant Purpose Investments recently announced they are considering liquidating a small portion of crypto assets in their Bitcoin ETFs to maintain cash balance. Experts suggest such moves indicate a cautious repositioning process among institutional investors in response to volatility.