The post 12% Leverage Ratio Proves We Are Not an ETF appeared on BitcoinEthereumNews.com. The Correction: CEO Phong Le states Strategy (MSTR) operates with just 12% leverage, defying distressed market narratives. The Defense: The firm raised $1.44 billion in equity in just 8 days, securing 21 months of dividend coverage to protect against volatility. The Stakes: The Operating Company classification is a strategic bid to prevent removal from the MSCI USA Index. Strategy Inc. (formerly MicroStrategy) launched a targeted offensive against market “misconceptions” Tuesday, with CEO Phong Le categorically rejecting claims that the Bitcoin treasury firm is over-leveraged. Strategy Has a Low Leverage With a Strong Balance Sheet During a Bloomberg interview, Le noted that Strategy is 12% leveraged and adding their preferreds brings it up to 27%. That is lower than typical companies in the US, which are over 60% leveraged. According to Le, rumors in the public space claiming that Strategy is highly leveraged contradict the actual situation. Le also debunked the idea that Strategy is unable to pay down dividends using its balance sheet. He outlined the company’s achievements in this regard, including the issuance of $1.44 billion worth of equity within eight days to cover 21 months, in addition to 74 years of dividend payments in its equity. Related: Why Strategy (MSTR) Is Now Worth Less Than Its Bitcoin Holdings No Plans of Selling Bitcoin Soon In the meantime, Le clarified that Strategy is not considering selling its Bitcoin holdings in the short term. Although that could be an option, he gave the assurance that the Bitcoin treasury is operating a healthy balance sheet that does not require embarking on the alternative plan. Meanwhile, Le further noted that his company intends to maintain a cash reserve of two to three years’ worth of its dividends, which we grow as the firm issues more preferred shares. According to him, Strategy will… The post 12% Leverage Ratio Proves We Are Not an ETF appeared on BitcoinEthereumNews.com. The Correction: CEO Phong Le states Strategy (MSTR) operates with just 12% leverage, defying distressed market narratives. The Defense: The firm raised $1.44 billion in equity in just 8 days, securing 21 months of dividend coverage to protect against volatility. The Stakes: The Operating Company classification is a strategic bid to prevent removal from the MSCI USA Index. Strategy Inc. (formerly MicroStrategy) launched a targeted offensive against market “misconceptions” Tuesday, with CEO Phong Le categorically rejecting claims that the Bitcoin treasury firm is over-leveraged. Strategy Has a Low Leverage With a Strong Balance Sheet During a Bloomberg interview, Le noted that Strategy is 12% leveraged and adding their preferreds brings it up to 27%. That is lower than typical companies in the US, which are over 60% leveraged. According to Le, rumors in the public space claiming that Strategy is highly leveraged contradict the actual situation. Le also debunked the idea that Strategy is unable to pay down dividends using its balance sheet. He outlined the company’s achievements in this regard, including the issuance of $1.44 billion worth of equity within eight days to cover 21 months, in addition to 74 years of dividend payments in its equity. Related: Why Strategy (MSTR) Is Now Worth Less Than Its Bitcoin Holdings No Plans of Selling Bitcoin Soon In the meantime, Le clarified that Strategy is not considering selling its Bitcoin holdings in the short term. Although that could be an option, he gave the assurance that the Bitcoin treasury is operating a healthy balance sheet that does not require embarking on the alternative plan. Meanwhile, Le further noted that his company intends to maintain a cash reserve of two to three years’ worth of its dividends, which we grow as the firm issues more preferred shares. According to him, Strategy will…

12% Leverage Ratio Proves We Are Not an ETF

For feedback or concerns regarding this content, please contact us at crypto.news@mexc.com
  • The Correction: CEO Phong Le states Strategy (MSTR) operates with just 12% leverage, defying distressed market narratives.
  • The Defense: The firm raised $1.44 billion in equity in just 8 days, securing 21 months of dividend coverage to protect against volatility.
  • The Stakes: The Operating Company classification is a strategic bid to prevent removal from the MSCI USA Index.

Strategy Inc. (formerly MicroStrategy) launched a targeted offensive against market “misconceptions” Tuesday, with CEO Phong Le categorically rejecting claims that the Bitcoin treasury firm is over-leveraged.

Strategy Has a Low Leverage With a Strong Balance Sheet

During a Bloomberg interview, Le noted that Strategy is 12% leveraged and adding their preferreds brings it up to 27%. That is lower than typical companies in the US, which are over 60% leveraged. According to Le, rumors in the public space claiming that Strategy is highly leveraged contradict the actual situation.

Le also debunked the idea that Strategy is unable to pay down dividends using its balance sheet. He outlined the company’s achievements in this regard, including the issuance of $1.44 billion worth of equity within eight days to cover 21 months, in addition to 74 years of dividend payments in its equity.

Related: Why Strategy (MSTR) Is Now Worth Less Than Its Bitcoin Holdings

No Plans of Selling Bitcoin Soon

In the meantime, Le clarified that Strategy is not considering selling its Bitcoin holdings in the short term. Although that could be an option, he gave the assurance that the Bitcoin treasury is operating a healthy balance sheet that does not require embarking on the alternative plan.

Meanwhile, Le further noted that his company intends to maintain a cash reserve of two to three years’ worth of its dividends, which we grow as the firm issues more preferred shares. According to him, Strategy will adopt this pattern for the next five to ten years before reassessing it.

Strategy is not an ETF

Le addressed the compressing mNAV situation of Strategy, noting that the firm has experienced a similar situation in the past, particularly during the 2022 crypto winter. According to him, Strategy bounced back from the bear market, alongside Bitcoin, which highlights the misconception in many quarters where people relate Strategy to an ETF rather than the Bitcoin operating company that it is.

According to Le, such a misconception is one of the reasons why some companies, including JPMorgan (MSCI), think the firm should not be part of their indices. He noted that Strategy has kick-started an education process to clarify such a misconception across the investment ecosystem.

Related: Saylor’s Strategy Builds $1.44B ‘Cash Moat’ to Protect Dividends, Cuts Bitcoin Outlook

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source: https://coinedition.com/mstr-leverage-myth-busted-ceo-reveals-12-ratio-to-quell-index-exclusion-fears/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact crypto.news@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Is Putnam Global Technology A (PGTAX) a strong mutual fund pick right now?

Is Putnam Global Technology A (PGTAX) a strong mutual fund pick right now?

The post Is Putnam Global Technology A (PGTAX) a strong mutual fund pick right now? appeared on BitcoinEthereumNews.com. On the lookout for a Sector – Tech fund? Starting with Putnam Global Technology A (PGTAX – Free Report) should not be a possibility at this time. PGTAX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance. Objective We note that PGTAX is a Sector – Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector – Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversified approach. History of fund/manager Putnam Funds is based in Canton, MA, and is the manager of PGTAX. The Putnam Global Technology A made its debut in January of 2009 and PGTAX has managed to accumulate roughly $650.01 million in assets, as of the most recently available information. The fund is currently managed by Di Yao who has been in charge of the fund since December of 2012. Performance Obviously, what investors are looking for in these funds is strong performance relative to their peers. PGTAX has a 5-year annualized total return of 14.46%, and is in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 27.02%, which places it in the middle third during this time-frame. It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower. When looking at a fund’s performance, it…
Share
BitcoinEthereumNews2025/09/18 04:05
The firm whose AI paper knocked the whole market is out with another big call

The firm whose AI paper knocked the whole market is out with another big call

The post The firm whose AI paper knocked the whole market is out with another big call appeared on BitcoinEthereumNews.com. A trader works on the floor at the New
Share
BitcoinEthereumNews2026/03/26 00:58
Sam Altman Unveils $1 Billion AI Plan Targeting Disease Cures

Sam Altman Unveils $1 Billion AI Plan Targeting Disease Cures

The post Sam Altman Unveils $1 Billion AI Plan Targeting Disease Cures appeared on BitcoinEthereumNews.com. Sam Altman announced a $1 billion investment plan through
Share
BitcoinEthereumNews2026/03/26 00:50