Strategy is currently favoring its preferred stock business, liquidity reserves and credit operations over repurchasing MSTR shares, Executive Chairman Michael Saylor said Monday.

Saylor said the company could consider buying back its common stock if MSTR falls to a sufficiently deep discount, but indicated that repurchases are not a near-term priority.

The remarks came during a Monday Q&A as Strategy’s common shares continue to struggle. MSTR has fallen around 38% this year and roughly 73% over the past 12 months. The decline has been driven partly by Bitcoin’s weaker performance, as well as Strategy’s continued stock issuance to fund BTC acquisitions, build its cash position, pay dividends and repurchase preferred shares.

Saylor said a buyback would become more compelling if MSTR traded substantially below the net asset value of the assets supporting the stock.

For now, the company is placing greater emphasis on its preferred-stock operations, particularly STRC.

Strategy Explains Why It Keeps Issuing MSTR

Strategy CEO Phong Le defended the company’s continued sale of MSTR shares despite concerns that issuing additional stock could dilute existing holders.

Le said new share sales can be beneficial when MSTR trades at a premium to the value of the assets behind each share. Strategy can raise funds at that premium and use the proceeds to acquire Bitcoin, potentially increasing the amount of BTC attributable to each MSTR share.

The recent decline in STRC has also influenced Strategy’s approach to managing its finances.

Le said the move reinforced the need to maintain sufficient liquidity to cover STRC dividend obligations. Strategy now has approximately $4.8 billion in cash and other U.S. dollar holdings.

Saylor said maintaining a large cash reserve gives the company several options, including purchasing Bitcoin, buying back MSTR or preferred shares, and reducing outstanding debt.

He added that the company must retain flexibility to sell Bitcoin when circumstances require it, rather than only accumulating the asset.

Strategy May Adjust BTC Purchases Based on Valuation

Saylor said Bitcoin’s position relative to its long-term average could influence Strategy’s future purchasing decisions.

When BTC trades considerably above its 200-week average, Strategy may hold onto more of the cash it raises instead of immediately purchasing additional Bitcoin. When the cryptocurrency trades near or below that benchmark, the company could view the level as a more attractive entry point.

STRC has a different objective from MSTR. The preferred stock is designed primarily to provide dividend income and relatively stable pricing rather than generate significant returns through share-price appreciation.

Saylor said Strategy wants STRC to remain close to $100. The company could issue additional STRC above that price and potentially use buybacks to support the shares if they trade below it.

He said the predictable nature of the product is an important part of its appeal.

Saylor Rejects Acquiring Cash-Generating Businesses

Saylor also dismissed the idea of purchasing profitable operating companies simply to create additional cash flow.

He said such acquisitions would introduce unnecessary complexity and make Strategy more difficult for investors to analyze and value.

Saylor advised MSTR shareholders to think in terms of a minimum four-year investment period, while suggesting that a seven- to 10-year horizon would be even more appropriate.

While acknowledging that the recent performance has been painful for investors, he maintained that shareholders should expect difficult periods as Strategy continues pursuing its long-term Bitcoin-focused approach.