Strategy has raised $1.44 billion to create a substantial cash reserve, a move its CEO Phong Le says was designed to dispel investor concerns about the company’s financial health during a downturn in the Bitcoin market.

Speaking on CNBC, Le explained that the company, which is deeply integrated into the crypto ecosystem, recently decided to raise capital and strengthen its balance sheet with U.S. dollars. The primary goal was to eliminate the “FUD”—or Fear, Uncertainty, and Doubt—circulating among investors.

Addressing Dividend Concerns

The capital raise, funded through a stock sale, directly addresses worries over whether Strategy could continue to service its debts and meet its dividend payment obligations if its stock price were to fall significantly. The new reserve is intended to cover at least 12 months of dividends, with plans to eventually expand it to a 24-month runway.

Le stated that while the company was not in actual danger of missing dividend payments or being forced to sell its Bitcoin holdings, the negative sentiment was creating a harmful narrative. “There was FUD that was put out there that we wouldn’t be able to meet our dividend obligations, which causes people to pile into a short Bitcoin bet,” he said.

A Show of Financial Strength

By raising $1.44 billion in just eight and a half days, Strategy secured enough capital to cover its dividend obligations for 21 months. Le emphasized that this swift action served two purposes: it directly addressed the market fears and demonstrated that the company could still attract significant capital even during a “Bitcoin downcycle.”

To further boost confidence, Strategy also launched a “BTC Credit” dashboard, which claims the company currently holds enough assets to service its dividends for more than 70 years. Le previously confirmed that the company would only consider selling its Bitcoin as a last resort if its stock fell below its net asset value and access to new capital was no longer available.