Strategy moved to calm investor concerns after raising $1.44 billion to secure dividend payments and stabilize confidence during a sharp Bitcoin downturn. The company created a cash reserve to address fears about debt servicing and dividend strength as Bitcoin volatility increased.
Strategy CEO Phong Le said the firm responded to growing questions about its financial stability as Bitcoin extended its decline. He said some investors feared that the company could struggle to meet future obligations.
Le said Strategy moved quickly by raising capital and placing US dollars on its balance sheet. He explained that the goal was to reduce fear, uncertainty, and doubt surrounding its financial state. On Monday, the company confirmed the new $1.44 billion reserve. Strategy said the amount came from a stock sale completed within eight and a half days.
The firm said the reserve will fund at least 12 months of dividend commitments. It plans to expand that coverage to 24 months to build a stronger liquidity runway. As Le noted, some investors questioned whether the company could continue paying dividends if the stock price fell too far. He called those concerns unfounded.
He said Strategy did not expect to sell Bitcoin to meet dividend needs. Phong Le stated that the firm also did not expect problems meeting near-term obligations. He said the concern itself drove market pressure as traders increased short positions against Bitcoin and the company. He described this as a secondary effect of circulating fear.
The reserve aims to form a financial shield for the company as the broader crypto sector faces turbulence. Bitcoin’s decline created heightened pressure on firms with Bitcoin-heavy balance sheets. Strategy built its long-term model around Bitcoin accumulation through debt, equity, and convertible instruments. This structure attracted attention as market conditions weakened.
The company said the new reserve acts as an insurance layer. It supports dividends and debt service even if markets tighten or crypto winter conditions continue. Le said the capital raise also served a second purpose. It showed that Strategy could still access funding during a market downturn.
He described the speed of the rise as evidence of market willingness to support the company. He said it also removed doubts about immediate liquidity. Last week, Le said Bitcoin sales would only occur if the stock traded below net asset value and new capital sources disappeared. He said this situation had not developed.
Strategy also released a new “BTC Credit” dashboard. The dashboard states that current assets could support dividend payments for more than 70 years. Investors now face the question: How long can the reserve protect Strategy if Bitcoin remains depressed?
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Although the reserve is large, Strategy still carries major future obligations. The firm faces multibillion-dollar convertible debt maturities in the coming years. If capital markets stay restricted, the company may experience tighter conditions. If Bitcoin fails to recover, liquidity pressures could increase.
Le said the reserve answered near-term fears. He said it provided time and stability during a period of heightened uncertainty. The raise shows the company’s intent to avoid forced Bitcoin sales. It places Strategy in a stronger short-term position as the market remains volatile. Yet future risk remains tied to Bitcoin’s price path. Strategy stated that its plans depend on access to capital and sustained market support.
Strategy’s $1.44B reserve aims to secure dividend payments and ease fears during a volatile Bitcoin slump. The move strengthens liquidity, reduces market doubt, and extends operational stability. Investors now watch whether sustained support and market recovery will reinforce Strategy’s long-term position.