The post MicroStrategy raises $1.44B ‘to get rid of Bitcoin FUD’ – What does this mean? appeared on BitcoinEthereumNews.com. In response to growing investor concerns about its heavily leveraged Bitcoin strategy, Strategy (formerly MicroStrategy) quickly built a $1.44 billion cash reserve to cover its dividend and debt obligations without selling any of its large BTC holdings. Strategy’s CEO Bitcoin strategy The defensive move, funded through a swift eight-and-a-half-day capital raise, directly addresses weeks of intensifying FUD, as CEO Phong Le described it.  Speaking on CNBC’s “Power Lunch,” Le confirmed the new liquidity buffer is intended to quell fears over Strategy’s ability to maintain its commitments if market conditions worsen. This reserve is specifically designed to cover a minimum of 12 months of dividend payments, with the company aiming to stretch that security window to 24 months. Crucially, the firm stressed that this new cash wall reinforces its core, long-term Bitcoin [BTC] strategy. But, Le also affirmed that the company would only consider the “last resort” of selling its core Bitcoin holdings if its stock price were to fall below its net asset value (NAV) and other financing options dried up. Le said, “We’re very much a part of the crypto ecosystem and Bitcoin ecosystem. Which is why we decided a couple of weeks ago to start raising capital and putting US dollars on our balance sheet to get rid of this FUD.” MSTR’s cash buffer, and what does this tell us about the firm? The move is a direct response to recent, and in CEO Phong Le’s view, “exaggerated” market chatter regarding the firm’s stability as Bitcoin retreated from its highs. By funding this massive liquidity pool through a stock sale rather than by liquidating any of its BTC treasury, Strategy has bought significant breathing room. The firm has also reinforced its commitment to a foundational “never sell” Bitcoin ethos, even during turbulent market conditions. He said,  “We weren’t… The post MicroStrategy raises $1.44B ‘to get rid of Bitcoin FUD’ – What does this mean? appeared on BitcoinEthereumNews.com. In response to growing investor concerns about its heavily leveraged Bitcoin strategy, Strategy (formerly MicroStrategy) quickly built a $1.44 billion cash reserve to cover its dividend and debt obligations without selling any of its large BTC holdings. Strategy’s CEO Bitcoin strategy The defensive move, funded through a swift eight-and-a-half-day capital raise, directly addresses weeks of intensifying FUD, as CEO Phong Le described it.  Speaking on CNBC’s “Power Lunch,” Le confirmed the new liquidity buffer is intended to quell fears over Strategy’s ability to maintain its commitments if market conditions worsen. This reserve is specifically designed to cover a minimum of 12 months of dividend payments, with the company aiming to stretch that security window to 24 months. Crucially, the firm stressed that this new cash wall reinforces its core, long-term Bitcoin [BTC] strategy. But, Le also affirmed that the company would only consider the “last resort” of selling its core Bitcoin holdings if its stock price were to fall below its net asset value (NAV) and other financing options dried up. Le said, “We’re very much a part of the crypto ecosystem and Bitcoin ecosystem. Which is why we decided a couple of weeks ago to start raising capital and putting US dollars on our balance sheet to get rid of this FUD.” MSTR’s cash buffer, and what does this tell us about the firm? The move is a direct response to recent, and in CEO Phong Le’s view, “exaggerated” market chatter regarding the firm’s stability as Bitcoin retreated from its highs. By funding this massive liquidity pool through a stock sale rather than by liquidating any of its BTC treasury, Strategy has bought significant breathing room. The firm has also reinforced its commitment to a foundational “never sell” Bitcoin ethos, even during turbulent market conditions. He said,  “We weren’t…

MicroStrategy raises $1.44B ‘to get rid of Bitcoin FUD’ – What does this mean?

2025/12/07 16:03

In response to growing investor concerns about its heavily leveraged Bitcoin strategy, Strategy (formerly MicroStrategy) quickly built a $1.44 billion cash reserve to cover its dividend and debt obligations without selling any of its large BTC holdings.

Strategy’s CEO Bitcoin strategy

The defensive move, funded through a swift eight-and-a-half-day capital raise, directly addresses weeks of intensifying FUD, as CEO Phong Le described it. 

Speaking on CNBC’s “Power Lunch,” Le confirmed the new liquidity buffer is intended to quell fears over Strategy’s ability to maintain its commitments if market conditions worsen.

This reserve is specifically designed to cover a minimum of 12 months of dividend payments, with the company aiming to stretch that security window to 24 months.

Crucially, the firm stressed that this new cash wall reinforces its core, long-term Bitcoin [BTC] strategy.

But, Le also affirmed that the company would only consider the “last resort” of selling its core Bitcoin holdings if its stock price were to fall below its net asset value (NAV) and other financing options dried up.

Le said,

MSTR’s cash buffer, and what does this tell us about the firm?

The move is a direct response to recent, and in CEO Phong Le’s view, “exaggerated” market chatter regarding the firm’s stability as Bitcoin retreated from its highs.

By funding this massive liquidity pool through a stock sale rather than by liquidating any of its BTC treasury, Strategy has bought significant breathing room.

The firm has also reinforced its commitment to a foundational “never sell” Bitcoin ethos, even during turbulent market conditions.

He said,

Le added,

This strategic decision came as the market saw Bitcoin trading at $89,956.08, while MicroStrategy’s stock price was $178.99, reflecting a $7.02%$ drop.

This comes just as the MSCI index exclusion threat looms, with a 15th January decision posing the most serious structural risk to Strategy’s leveraged “stock-for-Bitcoin” model.

Though Saylor dismisses the concern, arguing the firm is an operating software company, J.P. Morgan estimates the removal could trigger $2.8 billion in forced selling from MSCI trackers alone, with total outflows potentially reaching $8.8 billion.

This mechanical selling would collapse the premium MSTR trades at, severing the core mechanism used to fund its Bitcoin dominance.

This would force a painful re-evaluation of all “Bitcoin Treasury” copycats, threatening wider market fragility just as regulatory scrutiny intensifies.


Final Thoughts

  • MicroStrategy’s rapid $1.44B cash raise signals not weakness, but a calculated effort to silence insolvency fears.
  • The speed and scale of the capital raise show MicroStrategy still commands strong investor confidence—even as Bitcoin prices fall.
Next: Is USDT safe? Inside Hayes vs Butterfill’s battle over Tether’s solvency

Source: https://ambcrypto.com/microstrategy-raises-1-44b-to-get-rid-of-bitcoin-fud-what-does-this-mean/

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