Tom Lee: Strategy's $1.4 billion cash reserve can prevent forced BTC selling during price drops

According to ChainCatcher, BitMine Chairman Tom Lee analyzed that Strategy's recent establishment of a $1.4 billion cash reserve is very significant. Although Strategy's stock price has dropped by more than 50% over the past six months, this cash reserve will enable the company to continue paying dividends to shareholders during periods of bitcoin price declines, without having to sell its $61 billion worth of bitcoin holdings.

Tom Lee pointed out that during the last bitcoin downturn cycle, Strategy's stock once traded below its net asset value (NAV), and the establishment of a cash reserve is precisely to prepare for such situations.