Strategy CEO Phong Le announced that the firm successfully raised $1.44 billion in just eight days, aimed at reassuring investors during a time of market uncertainty concerning Bitcoin.
“We’re very much a part of the crypto ecosystem and Bitcoin ecosystem. Which is why we decided a couple of weeks ago to start raising capital and putting US dollars on our balance sheet to get rid of this FUD,” said Le during an appearance on CNBC’s Power Lunch.
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Le emphasized that part of the rationale behind establishing the sizable reserve was to alleviate investor anxiety concerning the company’s financial health in light of declining Bitcoin prices.
He further elaborated, “We weren’t going to have an issue to be able to pay our dividends… There was FUD that was put out there that we wouldn’t be able to meet our dividend obligations, which causes people to pile into a short Bitcoin bet.”
The reserve is designed to cover at least 12 months of dividends and plans to eventually increase this to 24 months.
Related: Cantor slashes Strategy target by 60%, tells clients forced-sale fears are overblown
Last week, he indicated that Strategy would only consider selling Bitcoin if their stock price fell below its net asset value, which was not their current plan.
The company has also launched a “BTC Credit” dashboard, asserting that they currently have enough assets to meet dividend requirements for over 70 years.
