Strategy Raises $1.44B to Fight FUD During Bitcoin Down Cycle

• Strategy raised $1.44 billion in eight days.
• The goal was to calm fear and rumors during a Bitcoin price drop.
• The reserve covers 21 months of dividend payments.
• CEO says the company is financially strong and not forced to sell Bitcoin.
• Strategy launched a new BTC Credit Dashboard showing long-term stability.

Strategy has taken a major step to restore confidence during the current Bitcoin down cycle. CEO Phong Le announced that the company has raised $1.44 billion in fresh capital, mainly to fight ongoing FUD (fear, uncertainty, and doubt) surrounding the firm’s ability to pay dividends and manage its financial obligations.

Le explained on CNBC’s Power Lunch that the crypto market slowdown created worry among investors. Some believed Strategy might struggle to cover dividends if its stock price dropped further, especially while Bitcoin remained weak. To stop these rumors from spreading, the company decided to raise new U.S. dollar reserves.

On Monday, Strategy revealed that the $1.44 billion came from a stock sale. This new reserve is designed to cover at least 12 months of dividends, but the company aims to expand it to a 24-month runway. This move is meant to show that Strategy can support investors even if the market stays uncertain for a long period.

Le said the rumors were exaggerated and that Strategy never had a real problem paying dividends. He also stressed that the company was not planning to sell its Bitcoin holdings to cover costs. However, the FUD caused some traders to bet against Bitcoin and question Strategy’s health — something the company wanted to stop immediately.

According to Le, raising $1.44 billion in just eight and a half days proves that Strategy can still access new capital even during a market downturn. This rapid fundraising also sends a message that the company remains strong and attractive to investors, despite the negative sentiment around Bitcoin.

Last week, Le stated that Strategy would only consider selling Bitcoin if the stock price fell below the company’s net asset value and if no new capital could be raised. With this new fundraising, that scenario appears unlikely.

To further boost transparency, Strategy released a “BTC Credit” dashboard. This tool shows that the company currently holds enough assets to support dividend payments for more than 70 years. The dashboard is meant to give investors a simple way to understand Strategy’s long-term financial strength.

By creating a large reserve and openly addressing concerns, Strategy aims to reduce panic in the market and rebuild trust among its shareholders.

Final Thought

Strategy’s fast $1.44B raise sends a strong message: the company is stable, confident, and prepared for a long Bitcoin down cycle. With new reserves, transparent tools, and clear communication, Strategy is working to protect investors and silence market FUD.