Strategy CEO Confirms Long-Term Bitcoin Hold Until 2029

Phong Lee, the CEO of Strategy, has revealed long-term Bitcoin hold, saying that the company does not have plans to sell any BTC before 2029.

According to Lee $1.44 billion reserve has been set aside to fund dividends and cover short-term obligations, ensuring the firm can hold its Bitcoin stash even through prolonged market downturns. Speaking in an interview, Lee noted that the cash reserve can pay dividends for about 21 months, and the company aims to have more than two years of coverage in U.S. dollars.

He also noted that investors’ attention is focused on market net asset value (mNAV), a metric that compares the company’s market value to its Bitcoin holdings. He noted that the company wouldn’t want to issue new shares to pay dividends if mNAV falls below 1, which is why the cash reserve is in place to prevent this scenario.

He added that Strategy would only have to sell Bitcoin if there were a prolonged market drop lasting about three years, and during the entire time, the company’s mNAV stays below 1. If that happens, a sale might be needed, but the timing would be several years away, possibly not until 2029 at the earliest.

Lee Shares Strategy’s Long-Term Bitcoin Plans

Lee said the company doesn’t try to guess the best time to buy Bitcoin, but sees itself as a long-term investor, purchasing Bitcoin only when it has extra cash or new funds available.

He pointed out that Strategy prefers to raise money using preferred shares instead of regular stock or debt because they act more like loans, don’t have an end date, and the company believes this approach is better than taking traditional debt or using unconvertible debt.

Lee noted that it may take time for the market to fully understand these shares. He compared it to how people slowly accepted Strategy’s earlier Bitcoin plans, and added that adoption could take 18 to 36 months or more.