Addressing Market FUD with a Stronger Financial Position
Strategy CEO Phong Le stated that a significant portion of the company's decision to establish a $1.44 billion USD reserve was to mitigate investor anxieties regarding the company's financial stability during a period of declining Bitcoin prices. Le explained that Strategy's deep integration within the Bitcoin ecosystem necessitates proactive measures to counter market uncertainty.
"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 get rid of this FUD," Le commented during an appearance on CNBC's Power Lunch.
This afternoon, Phong Le, CEO of @Strategy, joined @CNBC@PowerLunch to discuss how $MSTR moves 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 announcement of the $1.44 billion US dollar reserve, which was funded through a stock sale, was made by Strategy on Monday. The company indicated that this reserve is designed to initially cover at least 12 months of dividend payments and will subsequently be expanded to encompass a 24-month operational runway.
This capital infusion comes at a time when concerns were being raised about Strategy's capacity to meet its debt obligations and dividend payments, particularly if its stock price were to experience a significant decline.
Le elaborated on the nature of these concerns, stating, "And it’s really this FUD." He clarified that the company did not anticipate facing issues in paying its dividends, nor was it likely to need to sell its Bitcoin holdings. However, he acknowledged that speculative negative sentiment was being circulated, suggesting that Strategy might be unable to fulfill its dividend commitments, which could encourage short-selling of Bitcoin.
"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 added.
Company's Stance on Bitcoin Sales and Financial Outlook
In previous statements, Le indicated that Strategy would only consider selling its Bitcoin holdings as a last resort. This would occur if the company's stock price dropped below its net asset value and it lost access to new capital.
Additionally, Strategy has introduced a "BTC Credit" dashboard. This tool reportedly demonstrates that the company possesses sufficient assets to cover its dividend obligations for over 70 years.