Key Takeaways
- The company plans to hold its Bitcoin reserves unless faced with a liquidity crisis lasting decades.
- Recent capital raises and historical performance support the firm’s commitment to Bitcoin as a core treasury asset.
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Strategy CEO Phong Le said on Friday that the company would only consider selling Bitcoin in the event of a severe liquidity crunch. He also noted that only a decades-long cycle would force them to sell.
“We would sell if we got to the point where we did not have liquidity, and we didn’t have access to US dollars, and we couldn’t sell Bitcoin derivatives,” Le said, speaking in an interview with CNBC’s ‘Power Lunch.’ “But like I’ve said, that’s 2065 until we get there.”
“I don’t know that I’ll be doing this in 2065,” Le added. “Maybe at that point we might have to sell Bitcoin if we have a sustained 40-year-down cycle.”
Addressing concerns about Strategy’s liquidity, the CEO called them “FUD.”
Le said Strategy secured $1.4 billion in only eight and a half days amid market chatter that it might struggle to meet its dividend commitments. The raise provided 21 months of coverage and underscored the company’s ability to tap capital markets during a Bitcoin slump, he noted.
The CEO also dismissed concerns about crypto’s long-term viability as outdated. He noted Bitcoin has gained 45% annually over the past five years, ranking among the world’s best-performing asset classes.
“You can take any small segment of time, like the last two months, and say we’re in a down cycle. Bitcoin is going to go away, cryptocurrency is going to go away. But you have to take a step back. You have to have some diamond hands. You have to realize this is just volatility,” he said.
Strategy adopted its Bitcoin treasury strategy in 2020, becoming a vehicle for investors seeking exposure to the digital asset through public equities before spot Bitcoin ETFs launched in 2024.
The company currently holds 650,000 Bitcoin worth around $58 billion at current market prices.