Strategy builds $4.75 billion cash cushion as only bitcoin isn’t enough for investors

What this means: Strategy CEO Phong Le said the company has adjusted its approach after discovering that preferred stock investors put a premium on cash liquidity.

Strategy now holds $4.75 billion in cash, providing about 2.7 years of dividend coverage, Le said in an interview on CoinDesk’s Public Keys with Jennifer Sanasie.

Le said he initially assumed investors would value bitcoin highly because it is liquid and has appreciated significantly over time.

But institutions and investors putting shorter-term money into Strategy’s products “value cash more,” he said.

The context: The cash cushion is part of Strategy’s push to evolve beyond simply buying and holding bitcoin into a broader digital credit business.

Strategy has developed preferred-stock products such as STRC for investors seeking bitcoin-linked returns with less volatility.

Le described a spectrum ranging from investors seeking amplified bitcoin returns to those looking for lower-volatility yields closer to traditional credit or money-market products.

“Would I rather hold Bitcoin? Perhaps,” Le said. But making Strategy’s preferred products work ultimately supports MSTR and its bitcoin strategy, he argued.

Reading between lines: Le is pitching Strategy as a financial platform built around bitcoin rather than merely a leveraged bitcoin proxy.