Strategy (formerly MicroStrategy) CEO Phong Le evaluated the company’s Bitcoin strategy, dividend policy, and new business models that may come up in the future in an interview with Bloomberg Crypto.
Le stated that the company has no plans to sell BTC despite the sharp price fluctuations, and added that they aim to continue dividend payments “indefinitely, as much as possible.” According to Bloomberg, the company may also consider Bitcoin lending in the future when favorable market conditions arise.
In the interview, Le returned to the Bitcoin purchases initiated by Michael Saylor in 2020, stating that the company’s long-term vision remains unchanged, with BTC remaining the primary treasury reserve. While the strategy has established a dollar reserve for short-term liabilities, it plans to use this reserve as a buffer for dividend and interest payments rather than selling Bitcoin. “We won’t sell Bitcoin unless absolutely necessary,” Le said. “We currently have enough dollar reserves to cover two to three years of dividends, and we’ve strengthened that even further.”
Addressing the controversy surrounding the company’s dividend policy, the CEO stated that suspending payments would create significant distrust among investors. He stated, “I would never say never, but our goal is to pay dividends indefinitely. This is important for the company, our investors, and the Bitcoin ecosystem.”
Le also defended the claims of an “overly leveraged structure” circulating in the market as false. The CEO noted that Strategy’s leverage ratio, currently at 12% and including preferred stock, rises to 27%, well below the average for publicly traded companies in the US. “There was a huge misconception in the market that our company wouldn’t be able to pay dividends or would be forced to sell Bitcoin,” he said. “We’ve cleared that up,” he said.
Another notable part of the interview concerned Bitcoin lending. Responding to a Bloomberg reporter’s question, Le noted that the Bitcoin lending market has reached historic levels, and explained that the reason the company hasn’t entered this area until now is because “the business model has been kept simple.” However, he noted that Strategy could also consider this area as major US banks enter Bitcoin custody, lending, and staking services next year:
“Traditional financial institutions are entering this space strongly. If the opportunity arises to work with large, solid US banks, we are willing to consider services like Bitcoin lending.”
Phong Le stated that initial contacts have been made with some major banks regarding cryptocurrency services, but they have not yet reached the partnership level.
Finally, the CEO, who stated that Strategy is an operational company, not a fund, also opposed MSCI’s proposal to exclude companies with digital asset treasurys from the indexes: “We are not an ETF, we are a business. We buy Bitcoin, develop products, generate revenue, and employ staff. Therefore, excluding us from the indexes would not be the right approach.”
*This is not investment advice.