Strategy CEO pivots approach, amasses $4.75B cash reserve to match investor liquidity demand

Strategy CEO Phong Le said the company has built a $4.75 billion cash reserve, enough to fund roughly 2.7 years of dividend payments, according to ME News on Aug. 11 (UTC+8). Le said Strategy had long assumed investors would primarily prize Bitcoin’s liquidity and long-term upside. After launching preferred stock offerings, the company learned that institutional and short-term capital still place a premium on cash liquidity. Strategy is now broadening its focus from a pure buy-and-hold Bitcoin posture toward a wider digital credit business. It has rolled out preferred products including STRC, designed to give investors exposure to Bitcoin-linked returns while dialing down volatility. Le added that while he personally favors holding Bitcoin, making these preferred products successful ultimately supports MSTR and reinforces the company’s broader Bitcoin strategy. Le said Strategy aims to become the "JPMorgan of digital finance," envisioning other firms eventually building new investment tools on top of Strategy’s financial products. He added that DeFi could further diversify risk-return profiles and help direct more capital into Bitcoin. Strategy currently holds about 840,000 BTC, roughly 4% of Bitcoin’s eventual 21 million supply. Le said, "We have now become a bellwether and the central bank of Bitcoin." The company’s legacy software business also continues to expand, with software revenue up 7% year over year and cloud subscription revenue rising 54%. (Source: BlockBeats)