Tom Lee: Strategy to build a $1.4 billion cash reserve to avoid forced selling during BTC declines

BitMine Chairman Tom Lee analyzed that it is very important for Strategy to recently establish a cash reserve of $1.4 billion. Although Strategy's stock price has fallen more than 50% in the past six months, this cash reserve will allow the company to continue paying dividends to shareholders during the decline in Bitcoin prices without having to sell its $61 billion Bitcoin holdings.

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