BlockBeats News, December 12, BitMine Chairman Tom Lee recently stated that the establishment of a $14 billion cash reserve by the Bitcoin Treasury (DAT) company Strategy was a “wise move.” Despite a more than 50% drop in Strategy’s stock price over the past 6 months, this cash reserve will enable the company to continue paying shareholder dividends during a Bitcoin price decline without having to sell its $61 billion Bitcoin holdings, Lee noted.
Tom Lee pointed out that during the previous Bitcoin price decline cycle, Strategy’s stock traded below its Net Asset Value (NAV), and the establishment of a cash reserve was precisely to prepare for such a scenario. As the largest ETH treasury company holding over $12 billion in Ethereum, BitMine, while not having established a formal USD reserve, Lee stated that cash and staking revenues can similarly protect BitMine during market downturns.
