Strategy is emphasizing cash reserves, STRC, and its credit operations, according to Saylor.
By Helene Braun, AI Boost|Edited by Stephen Alpher6 min ago2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- MSTR's shares have dropped about 38% this year, although they saw a 5% increase on Monday as Saylor hinted at potential future buybacks.
- Strategy aims to bolster its cash reserves and may sell bitcoin when necessary to support STRC and dividend distributions.
- Saylor expressed that the company wants STRC to remain close to its $100 issue price, and advised MSTR investors to adopt a long-term perspective of at least four years.
While not currently a priority, Saylor noted that if shares of MSTR become significantly undervalued, the company may consider buybacks.
These remarks come after a challenging period for MSTR shareholders, as the stock has plummeted approximately 38% this year and 73% over the last twelve months, largely due to the decline in bitcoin's value and ongoing stock issuance to finance bitcoin purchases, build cash reserves, and manage dividend payments.
Saylor stated, “If MSTR is trading at a very, very deep discount to NAV, then probably you would see us do something like that.”
At present, the firm is concentrating on its preferred stock offerings, particularly STRC.
CEO Phong Le defended the strategy of issuing new MSTR shares. He explained that although some investors express concern about dilution, issuing shares can be advantageous when MSTR's price exceeds the underlying asset value. The proceeds can then be allocated to bitcoin purchases, thus increasing the bitcoin backing for each MSTR share.
The recent decline in STRC has also influenced how Strategy manages its finances.
Le emphasized the importance of maintaining enough cash to cover STRC's dividend obligations, leading to the current $4.8 billion cash reserve. Saylor mentioned that this large cash balance provides flexibility for purchasing bitcoin, buying back shares, or reducing debt.
This flexibility extends to bitcoin transactions as well. “We have to be able to sell bitcoin as well as buy bitcoin,” Saylor remarked.
He elaborated on how bitcoin pricing could influence their purchasing decisions. When bitcoin is priced significantly above its 200-week average, the company may choose to retain more cash. Conversely, if bitcoin approaches or falls below this average, it could indicate a buying opportunity.
Unlike MSTR, STRC is designed not for capital gains but for providing stable income through dividends while maintaining a consistent price. Saylor indicated a desire for STRC to trade around $100, with plans to issue more shares if it exceeds that price or to support it through buybacks if it drops below.
Saylor also dismissed the idea of acquiring profitable businesses for additional cash flow, asserting that it would complicate Strategy's operations and make valuation more challenging for investors.
He advised MSTR shareholders to expect a minimum four-year investment horizon, ideally seven to ten years. “I feel your pain,” Saylor acknowledged, “But I think we have to be prepared to have difficult years.”
MicroStrategyAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.Related AssetsBitcoin$64,385.252.05%Latest Crypto News- 1BitMart founder dismisses calls for audit as users report blocked funds, unpaid employees2 hrs ago
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CEX Volumes Hit 32-Month Low While DEX Spot Market Share Reaches All-Time High
CEX Volumes Hit 32-Month Low While DEX Spot Market Share Reaches All-Time High
Combined CEX volumes fell 23.9% to $3.76T in July, the lowest since November 2023, as DEX spot market share climbed to a record 19.5% and RWA perps hit $460B.
By CoinDesk ResearchAug 11, 2026Combined CEX volumes fell 23.9% to $3.76T in July, the lowest since November 2023, as DEX spot market share climbed to a record 19.5% and RWA perps hit $460B.
Why it matters:
Combined CEX volumes fell 23.9% to $3.76T in July, the lowest since November 2023, as DEX spot market share climbed to a record 19.5% and RWA perps hit $460B.
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