Strategy's $4.8 Billion Cash Reserve: A Flexible Tool for Strategy
Michael Saylor, Executive Chairman of Strategy, stated that buying back MSTR shares is not a priority for the company. However, if the stock falls to a deep discount relative to net asset value, they may consider it.
Strategy has $4.8 billion in cash reserves, which can be used flexibly for various purposes such as buying or selling Bitcoin, repurchasing MSTR and preferred shares, paying STRC dividends, and reducing debt.
Saylor emphasized that the company's focus is on its preferred stock business, specifically STRC. Due to Bitcoin's decline and new share issuances, MSTR has lost approximately 38% year-to-date and about 73% over the last 12 months.
Strategy CEO Phong Le explained that selling new MSTR shares can be beneficial if they trade above the per-share value of underlying assets. This allows funds to be used to purchase Bitcoin, increasing the amount of Bitcoin per share.