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Strategy Keeps Buybacks on the Table as Cash Reserve Grows

Strategy is keeping MSTR buybacks in reserve amid a steep NAV discount, while $4.8 billion in cash and STRC dividends are meant to support Bitcoin financing.

By Luc Vesters
• 3 min read
Strategy Keeps Buybacks on the Table as Cash Reserve Grows

Key Takeaways

  • Strategy is keeping share buybacks on the table, but only if MSTR trades at a very steep discount to net asset value.
  • The company is now mainly focused on its preferred stock structure, cash position, and financing more Bitcoin purchases.
  • Strategy is holding $4.8 billion in cash to support STRC dividends, debt repayment, buybacks, and possible additional Bitcoin purchases.

Strategy is not putting share buybacks at the top of the agenda for now, but it is keeping the option open if the MSTR stock falls far enough below the value of the underlying assets. Executive Chairman Michael Saylor said Monday that the company is now mainly focused on its preferred stock structure, its cash position, and financing further Bitcoin purchases.

Buybacks Remain an Option

According to Saylor, Strategy would only buy back its own shares if MSTR trades at a “very, very deep discount to NAV.” That fits with the stock’s recent weakness: MSTR is down about 38 percent this year and has fallen 73 percent year to date, partly because of Bitcoin’s decline and the ongoing issuance of new shares to finance Bitcoin, cash reserves, dividends, and preferred stock repurchases.

CEO Phong Le defended those share issuances. If MSTR trades above the value of the underlying assets, the company can sell new shares and use the proceeds to buy more Bitcoin, which could actually increase the amount of Bitcoin per share.

STRC Drives the Cash Strategy

The biggest shift, according to Le, is STRC, Strategy’s perpetual preferred stock that is meant to give investors steady income through semi-monthly dividends. STRC’s recent drop made it clear that the company needs to keep enough cash on hand to continue covering those payouts. Strategy now holds $4.8 billion (€4.1 billion) in U.S. dollars and wants to keep that buffer large enough to leave more room for Bitcoin purchases, buybacks, debt repayment, or preferred share repurchases.

In June 2026, Strategy also introduced a Digital Credit Capital Framework, under which the company must keep at least 12 months of preferred dividends and interest in reserve. If needed, that reserve can be topped up by selling Bitcoin through a separate monetization program. That shows how strongly Strategy’s balance sheet is now built around both BTC and the obligations on the company’s preferred side.

Strategy has already increased that dollar buffer several times in recent weeks. In an earlier move, the cash position was expanded while the Bitcoin holdings were left untouched, as also shown by the recent expansion of the dollar buffer.

Why This Matters

For European crypto followers, this approach shows how far Strategy has gone in combining a Bitcoin treasury with a credit-like capital structure. The company is trying to keep room for new BTC purchases and for payouts to STRC investors at the same time, which makes the balance between growth and liquidity even more important. That could matter for the broader market, because it shows how a major institutional player keeps actively restructuring its Bitcoin position and financing.

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