Strategy CEO Says Reserve Reduces Pressure to Sell Bitcoin (1)

Strategy Inc.’s new $1.4 billion reserve gives the Bitcoin accumulator flexibility to meet short-term obligations such as dividend and interest payments during market turbulence, according to Chief Executive Officer Phong Le.

The move aims to calm investor concerns that Strategy might be forced to sell Bitcoin to cover ballooning payouts. Funded by share sales, the reserve buys the firm time: 21 months of dividend coverage, extendable to two years, without having to liquidate any of its $59 billion Bitcoin stockpile.

“We really don’t want to have to utilize that Bitcoin at times when our equity value goes” below ...