Strategy's latest statement shows that the listed company, known for its Bitcoin Treasury strategy, is now focusing more on priority stock products STRC, cash reserves and credit operations than on promoting common stock buy-backs. With the recent weakness of the STRC, companies have adjusted their financial management thinking.

Cash reserve raised to $4.8 billion

The company disclosed that the United States dollar cash reserve currently held had reached $4.8 billion. According to Executive Chairman Michael Saylor, maintaining higher cash balances allows companies to retain more operating space in different market environments.

This flexibility includes the purchase of bitcoin, repurchase of MSTR or priority shares, and debt repayment. The retention of a larger cash position would help to cope with market fluctuations and would also cover the dividends paid by STRC, as compared to the immediate deployment of funds after financing.

Bitcoin is on the list.

Saylor states that Strategy requires not only the ability to buy bitcoin, but also the ability to sell bitcoin if necessary. This means that, in addition to its long-term configuration properties, Bitcoin also has liquidity management functions.

He also explained that the position of bitcoin prices relative to the average of the past 200 weeks could affect the pace of the use of the company ' s follow-up funds. If BTC is significantly above this long-term average, companies may retain more cash; if prices are close to or below that level, it is more likely to buy more.

Regular share buy-back not prioritized

With respect to stock buy-backs of market interest, Saylor indicated that this was not a top priority at this stage. The company is now more focused on priority stock operations, particularly STRC, and hopes to maintain its prices close to $100.

  • Current priorities: STRC, cash reserve, credit operations
  • United States dollar cash reserve: $4.8 billion
  • STRC Target: Keep as close as possible to $100

At the same time, he said that MSTR investors should view the strategy in a cycle of at least four years, with an ideal holding cycle of seven to ten years. Nor will companies supplement cash flows through the acquisition of profitable businesses to avoid a more complex business structure.

Additional information:In the text, STRC is the priority product that Strategy is currently focusing on, and the company considers its share-red stability to be an important constraint on financial management.