MSTR executive chairman prioritizes cash reserves and preferred stock over repurchases despite a 38% year-to-date decline.
MicroStrategy Inc. is maintaining a $4.8 billion cash reserve and deprioritizing share buybacks, Executive Chairman Michael Saylor said. The focus remains on supporting its preferred stock (STRC) and credit business amid a 38% drop in MSTR shares this year, driven by bitcoin’s decline.
MSTR has underperformed, falling 73% year-over-year, though shares rose 5% Monday after Saylor suggested potential future buybacks if shares trade at a steep discount to net asset value. The company may sell bitcoin to sustain STRC’s $100 issue price and dividend payments.
Saylor emphasized a long-term investment horizon for MSTR shareholders, while CEO Phong Le defended the practice of issuing new shares to fund bitcoin purchases when MSTR trades above asset-backed value.