Has $1.44 Billion in Reserves, Strategy Says It Won’t Release Bitcoin until 2029!

Jakarta, Pintu News – Strategy’s CEO, Phong Lee, recently revealed that his company has no plans to sell their Bitcoin (BTC) before 2029. This is supported by the establishment of a $1.44 billion dividend reserve that aims to strengthen dividend payments without having to sell their crypto assets. This reserve is expected to cover dividend payments for the next 21 months, with a target to cover more than two years.

Establishment of Dividend Reserve

Phong Lee emphasized that the establishment of the $1.44 billion dividend reserve is a strategy to separate short-term liabilities from the company’s long-term Bitcoin holdings. This aims to reduce the likelihood of Bitcoin liquidation during periods of prolonged market downturns. The reserve also allows the company to remain stable in meeting its dividend obligations without being dependent on the market value of Bitcoin.

This reserve is expected to cover approximately 21 months of dividend payments. The strategy reflects careful financial planning and a deep understanding of crypto market volatility. With this reserve, Strategy seeks not to sell their Bitcoin despite a sharp drop in market value.

Bitcoin Sales Scenario 2029

Lee described a scenario that might force companies to sell their Bitcoin. If there is a sustained downward cycle in Bitcoin price for about three years and the company’s net market value (mNAV) falls below 1x during that period, Strategy may need to consider a sale. However, with dividend reserves in place, this Bitcoin sale decision could be delayed until 2029 at the earliest.

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This strategy shows caution in managing volatile crypto assets. Lee hopes that with sufficient reserves, the company can avoid selling Bitcoin in unfavorable market conditions. This demonstrates Strategy’s commitment to maintaining a long-term investment in Bitcoin.

Preferred Stock Funding and Bitcoin Purchase

In his Bitcoin buying strategy, Lee emphasized that Strategy does not try to predict the market. “We are not Bitcoin traders, we are Bitcoin investors,” he said. The company buys Bitcoin when it has excess capital or when it raises new funds to invest. This suggests a systematic approach and a focus on long-term growth.

For funding, Strategy tends to use preferred stock, which Lee describes as more credit-like than common stock. The company has issued perpetuity preferred shares, which are considered superior to traditional debt and convertible financing. Lee estimates that the market may take 18 to 36 months to fully understand this new product.

Conclusion

With a strong financial strategy and careful planning, Strategy seems to have set itself up to take Bitcoin market fluctuations in stride. Large dividend reserves and a conservative buying strategy demonstrate the company’s commitment to maintaining and protecting their crypto assets.

This not only benefits Strategy in maintaining liquidity and financial stability, but also gives investors confidence that the company can manage assets wisely amid market uncertainty.

FAQ

What is the purpose of Strategy’s establishment of the $1.44 billion dividend reserve?

This reserve was established to ensure dividend payments continue without the need to sell Bitcoin (BTC), even when the crypto market is down.

When is Strategy likely to sell their Bitcoin?

The sale of Bitcoin will only be considered as early as 2029, especially if there is a prolonged price drop for about three years.

Why is Strategy so reluctant to sell Bitcoin?

The company views Bitcoin as a long-term investment and not a trading instrument, so they want to retain ownership for as long as possible.

How did Strategy get the funds to buy additional Bitcoin?

The company uses funding through preferred stock, which is considered more favorable than traditional debt.

What is the Strategy’s approach to buying Bitcoin?

The Strategy buys Bitcoin when it has excess capital or when it manages to raise new funds, without trying to predict market movements.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. Strategy CEO Says Bitcoin Sales Unlikely Before 2029 After. Accessed on December 3, 2025
• Featured Image: Cryptoslate