Michael Saylor: Strategy may start share buybacks when it falls cheap enough

Comparing news, Strategy founder Michael Saylor said that buying back the company's own shares is not currently a priority, but if MSTR's stock price falls to a cheap enough level, the company may repurchase shares.

Michael Saylor said during a question and answer session on Monday: If MSTR shows a very, very deep discount compared to net asset value (NAV), then you might see us take similar action.

Michael Saylor said the company plans to maintain large cash reserves to gain more flexibility that can be used to buy Bitcoin, buy back MSTR or preferred shares, or pay debts. This flexibility also applies to Bitcoin. We must be able to both sell Bitcoin and buy Bitcoin. The company's strategy is to prioritize the development of STRC, cash reserves, and credit operations over share buybacks.

He also explained how the Bitcoin price will affect Strategy's future purchase plans. When the price of BTC is well above its 200-week average, Strategy may keep more of the cash raised; when the price of Bitcoin is close to or below this long-term average, it may be viewed as a buying opportunity.

Regarding MSTR investors, Michael Saylor said the investment should be viewed with an investment period of at least four years, preferably 7 to 10 years. He concluded by saying, “I can feel your pain. But I think we have to be prepared for a tough year.