Strategy CEO Phong Le mentioned that part of the rationale behind the establishment of a $1.44 billion USD reserve was to mitigate investor worries regarding the company’s stability during a Bitcoin downturn.
“We are truly part of the crypto ecosystem and Bitcoin landscape. This is why we decided a few weeks ago to start raising capital and adding US dollars to our balance sheet to eliminate this FUD,” stated Le during CNBC’s Power Lunch on Friday.
This afternoon, Phong Le, CEO of @Strategy, joined @CNBC @PowerLunch to discuss how $MSTR interacts with bitcoin, how our USD reserve tackles recent FUD, the shifting Overton Window, key volatility drivers, and why bitcoin’s long-term perspective remains optimistic. pic.twitter.com/1t5hsfov0m
— Strategy (@Strategy) December 5, 2025
On Monday, Strategy announced the creation of the $1.44 billion US dollar reserve, financed through a stock sale. This reserve is designed to ensure that there are sufficient funds to cover at least 12 months of dividends, with plans to extend it to 24 months, according to the firm.
The new capital raise occurred amid concerns about whether Strategy could fulfill its debt and dividend payment obligations if the stock price were to drop significantly.
“And it’s really this FUD,” Le remarked on Friday.
“We weren’t expecting any issues in paying our dividends, nor were we likely to have to liquidate our Bitcoin, but… there was FUD circulated that we wouldn’t meet our dividend obligations, prompting people to pile into a short Bitcoin bet,” he elaborated.
“In just eight and a half days, we raised $1.44 billion — covering 21 months’ worth of dividend obligations, not only to address the FUD but also to demonstrate our capability to raise funds even during a Bitcoin downcycle.”
Related: Cantor cuts Strategy target by 60%, telling clients fears of forced sales are exaggerated
Last week, Le indicated that Strategy would only contemplate selling Bitcoin if its stock fell below net asset value and the company lost access to new capital.
Additionally, the firm introduced a “BTC Credit” dashboard, asserting that it currently possesses assets sufficient to cover dividends for over 70 years.
Magazine: 6 reasons Jack Dorsey is definitely Satoshi… and 5 reasons he’s not
