Saylor Prioritizes Credit Business Over MSTR Share Buybacks

Strategy's executive chairman Michael Saylor stated that strengthening the company's credit business is its top priority, over buying back shares of MSTR stock. During the company's Q2 earnings call, Saylor emphasized that Strategy has no interest in seeing the preferred stock trade above its $100 reference level. He believes a stronger credit business could ultimately support the value of common stock more than an immediate share repurchase program.

Saylor pointed out that if there is no credit business, equity would be worth zero, but with one, investors can debate whether it's worth tens or hundreds of billions of dollars. The company has sold about 3.5 million shares of MSTR common stock through its ATM program, generating $333 million in net proceeds. This move comes as Bitcoin reclaimed the $64,000 mark.

Strategy expects to maintain larger cash balances going forward, alongside growing Bitcoin holdings. Saylor stated that USD funds could be used for various purposes, including buying back preferred stock or repurchasing MSTR shares. However, he did not comment on whether the company would continue selling Bitcoin or resume buying it.