Strategy CEO Confirms No Bitcoin Sales Before 2029 Due to $1.44B Reserve
- Strategy has established a $1.44 billion reserve to support dividend payments, expected to cover dividends for approximately 21 months.
- CEO Phong Lee indicated that the company is unlikely to sell Bitcoin before at least 2029.
- The reserve aims to prevent the need for liquidating BTC during market downturns and separates short-term obligations from long-term holdings.
- Lee noted that selling BTC would only be considered if there is a sustained down cycle lasting about three years with market net asset value (mNAV) below one.
- The company’s capital strategy includes issuing preferred shares, which Lee described as more credit-like than common stock.
The establishment of a significant cash buffer allows Strategy to maintain dividend payments without the pressure of selling its Bitcoin holdings during unfavorable market conditions. This approach emphasizes their long-term investment strategy rather than short-term trading.
With a $1.44 billion reserve in place, Strategy aims to avoid liquidating BTC until at least after the year mentioned, ensuring stability in its dividend commitments.(Source)
