Disclaimer: The analyst who wrote this piece owns shares in Strategy (Mstr)
At the Bitcoin conference in Las Vegas, Strategy (MSTR) was performing chairman Michael Saylor asked how the company would answer if there were more to the net value (MNAV), fell below 1, as it did during the previous bear market.
In response, Saylor pulled an analogy to Grayscale Bitcoin Trust (GBTC), where he said, “GBTC is a closed trust … A business unit that has no operational flexibility to control his capital structure.”
He emphasized that strategy, unlike GBTC, is an operating company with the ability to assume debt and control its capital dynamically. Saylor claimed that “for any company to fall down to less than 1 MNAV, shareholders have lost faith in the company’s management structure.”
If the strategy’s share “went to $ 1 tomorrow,” he said, the company would respond by selling its preferred share or fixed income instruments Strk and STRF and use the proceeds to repurchase joint stock and thereby recapitalize the company.
When you highlight the importance of flexibility, Sayylor said, “To create value, you need to create option value to generate as much opportunity as possible. The more options, the greater the value.”
He concluded by claiming, “What makes our company a monster is to have more markets on the market in several capital markets,” emphasizes the strategy’s multi -channel access to liquidity and financial resilience.
