Strategy Establishes $1.4 Billion Cash Reserve to Hedge Against Bitcoin Price Fluctuations



According to ChainCatcher, BitMine Chairman Tom Lee analyzed that it is very important for Strategy to recently build a $1.4 billion cash reserve. Although Strategy's stock price has fallen more than 50% over the past six months, this cash reserve will enable the company to continue paying dividends to shareholders during Bitcoin price declines without having to sell its $61 billion Bitcoin holdings.
Tom Lee pointed out that during the previous Bitcoin downturn cycle, Strategy's stock trading price was below its net asset value (NAV), and building a cash reserve was precisely to prepare for such situations.

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