Saylor Places Credit Business Above MSTR Stock Buybacks

Strategy executive chairman Michael Saylor said that fixing the credit business takes priority over buying back shares of MSTR stock. During the Q2 earnings call, he stated that a stronger credit business could support a higher equity premium for shareholders.

Saylor emphasized that Strategy is focused on ensuring its primary credit instrument, the 'Stretch' preferred stock (STRC), trades at par. He believes that building a robust credit business can ultimately do more to boost the value of common stock than an immediate share repurchase program.

The company recently sold 3.5 million MSTR shares through its at-the-market (ATM) program, generating over $333 million in net proceeds. Saylor noted that Strategy expects to maintain larger cash balances going forward and will use this liquidity to address various needs, including buying back preferred stock or repurchasing MSTR shares.

He also stated that the company's USD Reserve, Bitcoin reserve, and unrestricted operating cash are expected to increase over time, providing more flexibility to act when opportunities arise. Saylor did not comment on whether Strategy will continue selling Bitcoin or resume buying it back.