Warning: The analyst who wrote this piece has shares of strategy (MSTR)
During the Bitcoin conference in Las Vegas, the executive president of Strategy (MSTR), Michael Saylor, was asked how the company would react if its value of the multiple assets in Net (MNAV) was below 1, as it did during the previous downward market.
In response, Saylor has established an analogy with Bitcoin Trust (GBTC) in gray levels (GBTC), declaring: “GBTC is a closed trust … A business entity that has no operational flexibility to manage its capital structure.”
He stressed that unlike GBTC, strategy is an operational company with the ability to take debt and manage its capital dynamically. Saylor argued that “for any business to fall in less than 1 MNAV, the shareholders have lost confidence in the business management structure.”
If the actions of the strategy “went to $ 1 tomorrow,” he said, the company would respond by selling its privileged or fixed income STRK and STRF actions and would use the product to buy ordinary actions, thus recapitalizing the company.
Stressing the importance of flexibility, Saylor said: “To create value, you must create an option value to generate as much optionality as possible. The more options, the greater the value. ”
He concluded by saying: “The thing that makes our company a monster is to have several market offers (automatic ticket distributors) in several capital markets”, highlighting the multi-channel access of the strategy for liquidity and financial resilience.
