Strategy CEO: $14 billion reserve can alleviate selling pressure, may consider launching BTC lending business in the future

Strategy CEO Phong Le stated that the company's newly established $1.4 billion dividend reserve fund can be used to pay dividends and interest during market fluctuations, helping to avoid being forced to sell Bitcoin due to short-term funding needs.

The reserve is raised through stock issuance and is expected to cover approximately 21 months of dividend expenses, extendable to two years, allowing the company to avoid tapping into its approximately $59 billion Bitcoin holdings. Le mentioned that the company does not wish to sell BTC when its valuation is below the value of its Bitcoin assets, with the goal of "permanently continuing to pay dividends." To reduce the risk of being forced to sell coins, the company may even consider lending out some Bitcoin in the future to generate additional income sources. He pointed out that as more traditional financial institutions enter the relevant field, Bitcoin lending is becoming a viable option.

Since transforming into a Bitcoin balance sheet model in 2020, Strategy has experienced significant stock price increases and corrections. The current company's mNAV is approximately 1.17, raising market concerns about the risk of asset value inversion. The latest initiative is seen as a response strategy under pressure on its digital asset treasury model.