Bitcoin Giant Strategy's Cash Reserve Was a 'Smart' Move, Says BitMine's Tom Lee► https://t.co/Webydva4dP https://t.co/Webydva4dP ...

According to Bloomberg, Strategy Inc CEO Phong Le said the company’s new $1.4 billion cash reserve can cover about 21 months of dividend and interest payments — extendable to two years — reducing the need to sell any of its roughly $59 billion in Bitcoin during market volatility. He added that if market pressures intensify, Strategy may consider lending out some of its Bitcoin as more traditional financial firms enter the space. https://t.co/GX3c8D7Lc3 ...

I get the concern around our ability to issue equity. Look, in eight and a half days, we issued $1.44% billion of equity. In eight and a half days, we issued enough equity to cover 21 months.And then on the back end of that, we have 74 years of dividends in our Bitcoin. So, we've addressed sort of this this this sort of concern around us selling Bitcoin. Um, now if we were able to grow our cash dividends, that cash reserve to call it two or three years of dividends, we're really talking about the end of 202 ...

Financial Strategy & Risk Management - MicroStrategy's primary treasury reserve asset is Bitcoin, complemented by a U S dollar reserve for short-term obligations like dividend payments [2][3] - The company aims to maintain a cash reserve equivalent to 2-3 years of dividend payments, which will grow with the issuance of more preferred shares [12] - MicroStrategy considers selling Bitcoin as a last resort, prioritizing dividend payments [7] - The company clarifies its leverage is 12%, or 27% including preferred shares, significantly lower than typical public companies in the US [8] - MicroStrategy issued $1.44 billion of equity in eight and a half days, enough to cover 21 months of dividends [9] Dividend Policy - MicroStrategy is committed to paying dividends in perpetuity, though the board retains the right to suspend them [6] - Suspending dividends could create fear, uncertainty, and doubt among preferred shareholders, impacting convertible and equity shareholders [5] Company Identity & Market Perception - MicroStrategy emphasizes it is an operating company, not a closed-ended fund or ETF, and should be valued at a premium for its ability to grow its treasury and operating income [15][16] - The company is engaging with MSCI to educate them on its identity as an operating company, countering the perception that it is an investment fund [18][19] Bitcoin Strategy & Future Opportunities - MicroStrategy's core business is buying and holding Bitcoin [22] - The company is excited about traditional finance entering the Bitcoin space, with banks offering custody, lending, and staking services [22][23] - MicroStrategy is open to partnering with US-based banks with strong balance sheets for Bitcoin services like custody and lending [25]

Core Viewpoint - The company has adopted a long-term strategy of buying and holding Bitcoin as its primary treasury reserve asset while maintaining short-term dollar reserves to meet obligations such as dividends [2][3][6]. Group 1: Financial Strategy - The company views Bitcoin as a global reserve digital asset for the long term and U.S. dollars as a reserve for short-term obligations [3][4]. - The company aims to maintain a cash reserve equivalent to two to three years of dividends, which will grow as more preferred shares are issued [12][13]. - The company has successfully issued $1.44 billion in equity in just eight and a half days, sufficient to cover 21 months of dividends [9]. Group 2: Dividend Policy - The company is committed to preserving dividend payments to avoid creating fear and uncertainty among shareholders, despite the board's right to suspend dividends [5][6]. - The objective is to pay dividends in perpetuity, although the company acknowledges that circumstances could change [6][11]. Group 3: Misconceptions and Market Position - The company clarifies that it is not highly leveraged, with a leverage ratio of 12%, and even with preferred shares, it stands at 27%, which is significantly lower than typical public companies [8][9]. - There is a misconception that the company is unable to pay dividends from its balance sheet, which the company has addressed by demonstrating its ability to issue equity [9][10]. - The company emphasizes its operational nature as a vertically integrated Bitcoin operating company, distinguishing itself from closed-end funds or ETFs [15][19]. Group 4: Industry Engagement - The company is engaging in an educational process regarding its identity and operations, particularly in light of MSCI's proposals to exclude digital asset Treasury companies from indices [17][20]. - The company is open to partnerships with traditional financial institutions as they enter the Bitcoin space, particularly in areas like custody and lending services [23][25].

Doesn't today's MSTR announcement of a $1.44B cash reserve make it even less likely that they'll blow up any time soon?What's the scenario where they're actually in serious trouble? Sub-$50k Bitcoin for 3-4 years+? ...