Strategy CEO Phong Le said part of the reason for setting up the $1.44 billion reserve was to ease investor concerns about the company’s health amid Bitcoin’s decline.
“We are very much a part of the crypto ecosystem and the Bitcoin ecosystem. That’s why we decided a few weeks ago to start raising capital and put US dollars on our balance sheet to get rid of this FUD,” he said Le during CNBC’s Power Lunch on Friday.
This afternoon, Phong Le, CEO of the company @Strategyhe joined @CNBC @PowerLunch talk about how $master takes off with bitcoin, how our dollar reserves are handling recent FUD, the shifting Overton window, key drivers of volatility, and why bitcoin’s long-term outlook remains good. pic.twitter.com/1t5hsfov0m
— Strategy (@Strategy) December 5, 2025
On Monday, Strategy announced a reserve of US$1.44 billion, financed by the sale of shares. The reserve is intended to maintain an amount sufficient to cover at least 12 months of dividends, and will eventually expand to cover a 24-month period, the company said.
Strategy’s Phong Le says there was a “FUD” dividend
The new increase comes amid concerns over whether Strategy can continue to service its debt and dividend obligations if the share price falls too far.
“And it’s really this FUD,” Le said Friday.
“We shouldn’t have had a problem paying dividends and probably won’t have to sell our Bitcoins, but… There was FUD being put out there that we wouldn’t be able to meet our dividend obligations, which caused people to pile into the short Bitcoin,” he said.
“We just dealt with raising $1.44 billion in eight and a half days — 21 months worth of dividend commitments, and we did it 1) to deal with FUD, but 2) to show people that we can still raise money in a Bitcoin down cycle.”
Related: Cantor cuts strategy target by 60%, tells clients fears of forced selling are overblown
Last week, Le said that Strategy would only consider selling Bitcoin if its shares fall below net asset value and the company no longer has access to fresh capital.
The company also launched the “BTC Credit” dashboard, which claims it currently has enough assets to service dividends for more than 70 years.
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