Strategy Considers Selling Bitcoin, CEO Reveals

Strategy Might Sell Bitcoin, CEO Says

In a recent interview, Fong Lee, the CEO of the business intelligence firm Strategy, opened up about the possibility of selling the company's Bitcoin holdings. He emphasized the importance of prioritizing dividend payments over retaining Bitcoin, although he reaffirmed that Bitcoin remains a vital part of their long-term strategy.

Key Takeaways

Strategy's CEO, Fong Lee, indicated that the firm may consider selling its Bitcoin holdings.
The primary focus for Strategy is to ensure dividend payments.
Lee views Bitcoin as a significant long-term investment, not just a short-term asset.
Strategy supports the cryptocurrency market's stability over time, rather than its daily fluctuations.
There has been a reaction from Strategy to MSCI's proposal that could potentially exclude firms with significant digital asset holdings.

CEO Indicates Potential Bitcoin Sales

During a recent discussion with the Schwab Network, Fong Lee, the Chief Executive Officer of Strategy, did not dismiss the possibility of selling the company’s Bitcoin assets. He highlighted that paying dividends to shareholders takes precedence over holding onto Bitcoin.

“All that said, what’s important is paying our dividends, which is more critical than not selling Bitcoin,” Lee explained. If Bitcoin's price were to drop by 50%, he mentioned that the company could use its Bitcoin holdings to cover dividends until around 2065. Despite this, Lee reinforced that Bitcoin remains a fundamental element of Strategy’s long-term vision. “Bitcoin is always an important purchase and a good buy for us at any point in time,” he stated.

Strategic Timing for Purchases

This significant purchase of Bitcoin, announced earlier this week, was strategically timed based on the company’s internal financial stability and favorable stock liquidity. Lee emphasized that Strategy is concentrating on the cryptocurrency's performance over the long haul, rather than short-term market fluctuations. “For the last five years, I think what we’ve been doing has been bullish for the Bitcoin market, and so we don’t think about it week to week,” he added.

Response to MSCI's Proposal

As reported by U.Today, Strategy submitted a letter today in response to MSCI's suggestion to exclude companies with more than 50% of their assets in digital assets. Strategy argues that this potential exclusion could be deemed "discriminatory." In the Schwab interview, Lee referred to the proposal as “misinformed” and “misguided.” He emphasized, “It just seems early to make a decision that digital assets shouldn’t be an area that people should invest in.”

By focusing on the long-term value of cryptocurrencies like Bitcoin, Strategy aims to maintain a positive outlook on the evolving digital asset landscape.