Michael Saylor: Strategy Stock Price Could Trigger Stock Buyback When Cheap Enough

BlockBeats News, August 18th - Strategy founder Michael Saylor stated that a share buyback is not currently a top priority for the company, but if MSTR's stock price falls to a sufficiently cheap level, the company may engage in a stock buyback.

Michael Saylor said in a Monday Q&A session: "If MSTR trades at a very, very deep discount to its net asset value (NAV), then you might see us take action like that."

Michael Saylor mentioned that the company plans to maintain a large cash reserve for increased flexibility, which can be used to purchase Bitcoin, buy back MSTR or preferred shares, or pay off debt. This flexibility also applies to Bitcoin. "We need to be able to both sell Bitcoin and buy Bitcoin." The company's strategy is to prioritize developing STRC, cash reserves, and credit businesses rather than stock buybacks.

He also explained how the Bitcoin price would impact Strategy's future buying plans. When the BTC price is significantly above its 200-week moving average price, Strategy may retain more of the raised cash; when the Bitcoin price is close to or below this long-term average, it may be seen as a buying opportunity.

For MSTR investors, Michael Saylor suggested viewing this investment with a minimum four-year time horizon, ideally holding for 7 to 10 years. He concluded by saying, "I can feel your pain. But I think we have to be prepared to go through tough years."