Tom Lee Applauds Strategy's $1.44 Billion Cash Reserve to Support Bitcoin Treasury Dividends
Tom Lee, chairman of BitMine Immersion Technologies, praised Strategy for launching a $1.44 billion cash reserve aimed at supporting dividend payments for Strategy’s approximately $61 billion Bitcoin treasury. The cash reserve is designed to enable dividend payments during Bitcoin downturns and reduce the need to sell Bitcoin holdings.
Strategy made the announcement earlier in the month, highlighting the cash tranche's role in providing liquidity for shareholders.
BitMine itself holds over $12 billion in ETH and maintains its own cash reserves, projecting around $400 million in staking revenue and $1 billion in cash.
Lee discussed the evaluation of digital asset treasuries through market cap to net asset value (mNAV); when mNAV falls below 1, firms often respond by share repurchases or asset sales. Examples include ETHZilla selling ETH to repurchase shares and SharpLink Gaming repurchasing shares when NAV was below 1.
Lee noted that treasuries trading below NAV face existential challenges and observed a broader decline in hype around digital asset treasuries as cryptocurrency prices decrease.
