• Correction: CEO Von Leh says Methods (MSTR) operates with simply 12% leverage and ignores the distressed market narrative.
• Protection: The corporate raised $1.44 billion in fairness in simply eight days and secured 21 months of dividend safety to guard in opposition to volatility.
• Stakes: Classification of working firms is a strategic bid to stop removing from the MSCI USA Index.

Technique Inc. (previously MicroStrategy) launched a focused assault on market “misconceptions” on Tuesday, with CEO Phong Le firmly rejecting claims that the Bitcoin treasury agency is overleveraged.

Technique has low leverage and robust stability sheet

In an interview with Bloomberg, Lee stated that Technique’s utilization price is 12%, and once you add of their preferences, it goes as much as 27%. That is decrease than the everyday U.S. firm, which has leverage of over 60%. In accordance with Le, public rumors that the technique is extremely utilized are inconsistent with the fact.

Le additionally debunked the concept that Technique can not use its stability sheet to pay dividends. He outlined the corporate’s efficiency on this regard, together with issuing 21 months price of $1.44 billion price of shares inside eight days, along with 74 years of paying dividends by itself shares.

Associated: Why the worth of Technique (MSTR) is decrease than the quantity of Bitcoin held

I’ve no plans to promote my Bitcoin anytime quickly.

Alternatively, Le revealed that Technique has no plans to promote its Bitcoin holdings within the quick time period. Whereas that could possibly be an choice, he assured that the Bitcoin Treasury operates a wholesome stability sheet that doesn’t require it to embark on different plans.

In the meantime, Mr Lee additional stated his firm intends to keep up money reserves equal to 2 to 3 years of dividends, which is able to enhance as the corporate points extra most well-liked shares. He stated Technique plans to observe this sample for the subsequent 5 to 10 years after which reevaluate.

Methods are usually not ETFs

Le talked about Technique’s mNAV compression scenario, noting that the corporate has skilled related conditions up to now, particularly within the crypto winter of 2022. He stated Methods has bounced again from the bear market together with Bitcoin, however this highlights a false impression in lots of quarters that individuals affiliate Methods with ETFs reasonably than Bitcoin working firms.

Such misconceptions are one cause why some firms, together with JPMorgan (MSCI), do not assume the corporate must be included of their indexes, Lee stated. He famous that Technique has begun an academic course of to clear up such misconceptions throughout the funding ecosystem.

Associated: Saylor’s technique builds $1.44 billion ‘money moat’ to guard dividends, lowers Bitcoin outlook