Strategy (NASDAQ:MSTR), the firm long associated with large-scale Bitcoin accumulation under Executive Chairman Michael Saylor, is placing greater emphasis on building liquidity and supporting its preferred stock offerings rather than prioritizing buybacks of its common shares.
During the company’s Q2 2026 investor Q&A session on August 17, Saylor made clear that repurchasing MSTR stock is not an immediate goal, even as the company maintains a cash position of approximately $4.8 billion.
The remarks come after a difficult stretch for Strategy’s ordinary shareholders. MSTR has declined roughly 38 percent year-to-date and about 73 percent over the past twelve months.
The slide has been linked to weakness in Bitcoin’s price and ongoing issuance of common shares.
Those share sales have helped finance Bitcoin acquisitions, expand cash reserves, cover dividend obligations, and repurchase preferred securities.
Saylor left open the possibility of action under specific conditions. He noted that if MSTR traded at a very deep discount to its net asset value, the company would likely consider repurchases.
“If MSTR is trading at a very, very deep discount to NAV, then probably you would see us do something like that,” he said.
For now, however, attention remains centered on the preferred stock side of the business, particularly the STRC series.
Saylor emphasized that “fixing the credit” is the higher priority, as strengthening that segment could ultimately expand the equity premium and benefit common shareholders more effectively than immediate buybacks.
CEO Phong Le addressed concerns about dilution from continued MSTR issuance.
He explained that selling shares can prove beneficial when the stock trades above the underlying asset value per share.
In those cases, deploying the proceeds into Bitcoin can actually raise the amount of Bitcoin attributable to each outstanding share. Recent weakness in STRC has influenced the firm’s approach to capital management.
Le highlighted the importance of holding enough cash to reliably meet STRC dividend requirements.
The current $4.8 billion reserve provides that buffer. Saylor added that maintaining sizable cash balances creates strategic optionality.
The company can use the funds to acquire more Bitcoin, buy back common or preferred shares, or reduce debt when circumstances warrant. This flexibility extends to its Bitcoin holdings.
Saylor stressed that the firm must be prepared to both buy and sell the cryptocurrency as conditions dictate.
Purchase decisions may also hinge on Bitcoin’s valuation relative to its longer-term average.
When the price sits well above the 200-week moving average, Strategy may choose to retain more of the capital it raises.
When the price approaches or falls below that average, the environment could present a more attractive entry point for additional purchases.
STRC is structured differently from the common stock.
It is intended primarily as an income-generating instrument with relatively stable pricing near its $100 issue level, rather than a vehicle for capital appreciation.
Saylor indicated the company aims to keep STRC trading close to that level and is willing to issue additional shares above $100 or conduct buybacks if the price dips below it.
That stability, he suggested, forms part of the product’s appeal.
Saylor dismissed the idea of acquiring profitable operating companies solely to generate cash flow, arguing that such a move would complicate the business and make it harder for investors to value.
He also advised MSTR holders to adopt a multi-year perspective, recommending a minimum four-year horizon and preferably seven to ten years.
While acknowledging the difficulty of recent periods, he underscored the need to weather challenging years as part of the longer-term business model. Strategy’s latest comments reflect a shift toward more active capital management, prioritizing liquidity and preferred-stock stability while keeping common-share buybacks as a contingent option rather than a near-term priority.
