On December 12, Tom Lee, Chairman of BitMine, recently stated that the Strategy company’s establishment of a $1.4 billion cash reserve for Bitcoin crypto treasury (DAT) is a “wise move.” Although Strategy’s stock price has fallen over 50% in the past six months, this cash reserve will enable the company to continue paying dividends to shareholders during periods of Bitcoin price decline without having to sell its $61 billion worth of Bitcoin holdings. Tom Lee pointed out that during the previous Bitcoin downturn cycle, Strategy’s stock trading price was below its net asset value (NAV), and building up the cash reserve was precisely in preparation for such situations. As the largest ETH treasury holding over $12 billion worth of Ethereum, BitMine has not established an official USD reserve, but Lee said that cash and staking income can also protect BitMine during market downturns.
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Tom Lee: Cash and staking income will protect BitMine during market downturns
On December 12, Tom Lee, Chairman of BitMine, recently stated that the Strategy company’s establishment of a $1.4 billion cash reserve for Bitcoin crypto treasury (DAT) is a “wise move.” Although Strategy’s stock price has fallen over 50% in the past six months, this cash reserve will enable the company to continue paying dividends to shareholders during periods of Bitcoin price decline without having to sell its $61 billion worth of Bitcoin holdings. Tom Lee pointed out that during the previous Bitcoin downturn cycle, Strategy’s stock trading price was below its net asset value (NAV), and building up the cash reserve was precisely in preparation for such situations. As the largest ETH treasury holding over $12 billion worth of Ethereum, BitMine has not established an official USD reserve, but Lee said that cash and staking income can also protect BitMine during market downturns.