Strategy Prioritizes Credit Business Over MSTR Stock Buybacks

Strategy executive chairman Michael Saylor said that 'fixing the credit' takes priority over buying back MSTR stock. He stated during the company's second quarter earnings call that the company is focused on ensuring its primary credit instrument, the Stretch preferred stock (STRC), trades at par.

Saylor said that building a stronger credit business could ultimately do more to support the value of MSTR common stock than an immediate share repurchase program. He added that if there is no credit business, the equity would be worth zero, but if there is one, then 'there's just a debate over whether or not it's worth $50 billion or $100 billion or $250 billion or a trillion.'

Strategy announced on Monday that it had sold about 3.5 million shares of MSTR common stock through its at-the-market program, generating more than $333 million in net proceeds. The company expects to maintain larger cash balances going forward, alongside its growing Bitcoin holdings.

Saylor stated that Strategy has no interest in seeing the preferred stock trade above its $100 reference level, and that the USD funds could eventually be used to buy back preferred stock, repurchase MSTR shares, retire debt or purchase more Bitcoin. Since May, Strategy has sold about 6,948 BTC for approximately $431.8 million in proceeds.