Key Takeaways
- The company plans to hold its Bitcoin reserves unless faced with a liquidity crisis lasting decades.
- Recent capital raises and historical performance support the firm’s commitment to Bitcoin as a core treasury asset.
Strategy CEO Phong Le said on Friday that the company would only consider selling Bitcoin in the event of a severe liquidity crunch. He also noted that only a decades-long cycle would force them to sell.
Addressing concerns about Strategy’s liquidity, the CEO called them “FUD.”
Le said Strategy secured $1.4 billion in only eight and a half days amid market chatter that it might struggle to meet its dividend commitments. The raise provided 21 months of coverage and underscored the company’s ability to tap capital markets during a Bitcoin slump, he noted.
The CEO also dismissed concerns about crypto’s long-term viability as outdated. He noted Bitcoin has gained 45% annually over the past five years, ranking among the world’s best-performing asset classes.
Strategy adopted its Bitcoin treasury strategy in 2020, becoming a vehicle for investors seeking exposure to the digital asset through public equities before spot Bitcoin ETFs launched in 2024.
The company currently holds 650,000 Bitcoin worth around $58 billion at current market prices.
Source: https://cryptobriefing.com/bitcoin-holding-strategy-decade-slump/
