Strategy Prioritizes Cash Reserves Over MSTR Buybacks

Strategy, a company led by Michael Saylor, is focusing on building its cash reserves rather than buying back shares of its own stock. This strategy may be surprising to some investors who have seen MSTR trade at a discount to its net asset value (NAV).

Saylor emphasized that Strategy's primary goal right now is to boost its credit business, which he believes will ultimately benefit the company's common shares more than any immediate buyback. He stated that 'fixing the credits' is crucial and that without a working credit business, the equity would carry little value on its own.

The company has been selling some of its Bitcoin holdings to build up cash reserves, with 6,948 BTC sold since May for around $431.8 million. However, CEO Phong Le has indicated that Strategy plans to restart buying BTC later this year.