Strategy CEO: During the downturn, we will continue to implement the strategy of issuing equity and debt to increase our Bitcoin holdings; there is no...
TL;DR
Strategy CEO Phong Le confirms the company will continue issuing equity and debt to buy Bitcoin during downturns, maintaining its strategy despite slower accumulation. He denies dividend payment issues, citing a $1.44 billion reserve fund raised quickly to counter market FUD.
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According to ChainCatcher, Strategy CEO Phong Le stated in an interview with CNBC that Strategy has weathered the Bitcoin bear market and, as Bitcoin declines, they will continue to execute their strategy of issuing equity and debt to raise funds at a premium to net asset value in order to purchase Bitcoin in a value-added manner.
During market downturns, the pace of accumulation may slow, but the overall strategy will remain unchanged. Strategy does not have an inability to pay dividends, but rumors have been spread claiming that the company cannot meet its dividend obligations, leading to short of Bitcoin in the market.
Regarding the establishment of the $1.44 billion dividend reserve fund, Phong Le stated that Strategy raised $1.44 billion in just eight and a half days, equivalent to 21 months of dividend payments. This was done to eliminate FUD (fear, uncertainty, and doubt) and to demonstrate to the market that Strategy can still raise funds quickly even during a Bitcoin downturn.