Strategy is putting its preferred stock operations, cash reserves and lending business ahead of MSTR share buybacks, Executive Chairman Michael Saylor said Monday.
Saylor said the company could repurchase its common stock if the shares become deeply undervalued, but stressed that buybacks are not currently a priority.
The comments came during a Monday Q&A after a difficult stretch for Strategy’s common shareholders. MSTR has declined about 38% in 2026 and roughly 73% over the past year, with Bitcoin’s decline contributing to the weakness. The company’s continued issuance of common shares to fund BTC purchases, build liquidity, pay dividends and repurchase preferred stock has also weighed on the stock.
Saylor said a buyback could become attractive if MSTR trades at a significant discount to the value of the company’s underlying assets.
For now, however, Strategy is concentrating on its preferred stock products, particularly STRC.
Strategy Defends Continued MSTR Issuance
CEO Phong Le defended the company’s decision to continue issuing MSTR shares despite concerns about shareholder dilution.
Le argued that issuing stock can benefit shareholders when MSTR trades above the value of the assets supporting each share. If Strategy sells shares at that premium and uses the proceeds to purchase Bitcoin, the amount of BTC backing each outstanding MSTR share can increase.
The recent weakness in STRC has also prompted Strategy to adjust its approach to liquidity management.
Le said the episode reinforced the importance of holding enough cash to meet STRC dividend obligations. Strategy currently has about $4.8 billion in U.S. dollar reserves.
Saylor said the large cash position provides the company with greater flexibility to deploy capital toward Bitcoin purchases, MSTR or preferred-stock buybacks, or debt reduction.
The company also wants to preserve the ability to move in both directions with its Bitcoin holdings.
“We have to be able to sell bitcoin as well as buy bitcoin,” Saylor said.
Bitcoin Valuation Could Guide Future Purchases
Saylor explained that Strategy’s Bitcoin purchases could depend partly on where BTC trades relative to its long-term valuation.
If Bitcoin rises substantially above its 200-week average, Strategy may decide to retain more of the cash it raises instead of immediately buying additional BTC. If Bitcoin falls near or below that long-term average, the company could consider the conditions more favorable for purchases.
The company’s strategy for STRC differs from its approach to MSTR. STRC is intended primarily to generate dividend income and maintain relatively stable pricing rather than deliver major gains through share appreciation.
Saylor said Strategy wants STRC to remain close to $100. The company could issue more preferred shares when the price trades above $100 and potentially buy shares when they fall below that level.
According to Saylor, maintaining predictable pricing is a key feature of the STRC product.
Saylor Rules Out Traditional Business Acquisitions
Saylor also rejected the idea of acquiring profitable operating companies simply to generate additional cash.
He argued that adding conventional businesses would increase Strategy’s complexity and make it more difficult for investors to assess the company.
For MSTR shareholders, Saylor recommended maintaining an investment horizon of at least four years, while suggesting that seven to 10 years would be more appropriate.
He acknowledged that the recent performance has been difficult for investors but maintained that shareholders should be prepared for challenging periods as Strategy continues pursuing its long-term Bitcoin-focused strategy.
