Saylor: MSTR Buyback Not a Priority, Strategy Holds $4.8 Billion Reserve

Strategy executives announced that they do not consider MSTR buybacks a priority but could evaluate them if the stock falls to a deep NAV discount, while keeping $4.8 billion in cash flexible for Bitcoin, buybacks, dividends, and debt management.

The statements, reported by CoinDesk, were made during a Q&A session held by Strategy on Monday. Executive Chairman Michael Saylor stated that the company is prioritizing its preferred stock business, specifically STRC. Due to Bitcoin’s decline and new share issuances, MSTR has lost approximately 38% year-to-date and about 73% over the last 12 months.

Saylor noted that an MSTR buyback could come onto the agenda if MSTR shares trade at a “very deep discount” relative to net asset value. However, the company is not earmarking its $4.8 billion cash reserve for a single purpose. This resource could be used to buy or sell Bitcoin, repurchase MSTR and preferred shares, specifically to pay STRC dividends, and to reduce debt.

Strategy expands its room for maneuver with cash reserve

CEO Phong Le also responded to criticisms regarding the sale of new MSTR shares. When MSTR trades above the per-share value of the underlying assets, funds from the issuance can be used to purchase Bitcoin. According to Le, although this process may dilute existing investors’ stakes, it can increase the amount of Bitcoin per share. Therefore, Le argued that share sales do not work against existing shareholders in all cases.

Saylor also mentioned that they use Bitcoin’s average price over the last 200 weeks as a threshold. If Bitcoin is well above this level, the company may preserve a larger portion of the cash it has collected; when the price approaches or falls below the average, it may consider it a buying opportunity. STRC is intended to offer stability around $100. Strategy plans to sell more when STRC rises above $100 and support it with buybacks when it falls below.