Saylor: Strategy Investors Must Prepare for Years of Pain
Strategy Inc. (NASDAQ:MSTR) Executive Chairman Michael Saylor and CEO Phong Le defended the company's Bitcoin-focused capital strategy, arguing that near-term pain and equity issuance are necessary.
The conversation came after Strategy's second investor Q&A with Natalie Brunell, where Le addressed shareholder concerns about the 75% drawdown in MSTR shares since its highs. He emphasized that MSTR is designed to provide amplified Bitcoin exposure, which means it can outperform during rallies but experience steeper losses during downturns.
Saylor acknowledged the frustration, noting his personal ownership of over 19 million MSTR shares and expressing a willingness to endure 'difficult years', potentially one or two. He advised investors with a seven-to-10-year horizon, stating that Strategy is in investment mode while building its digital-credit business.
Saylor also countered the idea that issuing equity is dilutive to shareholders. Le argued that acquiring Bitcoin at a price above 1x MSTR's net asset value can be accretive on a BTC-per-share basis, focusing instead on whether each financing transaction increases the amount of Bitcoin attributable to each share.
Saylor revealed Strategy's central objective has shifted from simply accumulating as much Bitcoin as possible. It now aims to build what it calls the world's 'best credit' through STRC and use proceeds to acquire Bitcoin, maintain dollar reserves, or manage its capital structure.