Denuch: The analyst to write this piece owns strategy sharing (MSTR)
In Bitcoin conference in Las VegasStrategy (MSTR) executive chairman Michael Saylor asked how the company would respond if multiple in net asset value (MNAV) fell below 1, as did the previous bear market.
In response, Saylor drew an analogy with the Grayscale Bitcoin Trust (GBTC), saying, “The GBTC is a closed confidence … a corporate entity that is flexible in operation to manage its capital structure.”
He emphasized that unlike the GBTC, the approach is an operating business capable of getting a debt and management of its capital. Saylor argued that “For any company to fall below 1 MNAV, shareholders have lost their faith in the business management structure.”
If the stock approach “went to $ 1 tomorrow,” he said, the company will respond by selling preferred stock or fixed Strk and StrF instruments and use the proceeds to re -buy the usual stock, thus repairing the company.
Highlighting the importance of flexibility, Saylor said, “To create value, you need to create the value of option to come up with as much optionality as possible. The more options, the greater the value.”
He concludes by consideration, “The thing that makes our company a monster develops many and-mancases (ATMs) in many capital markets,” accessing the multi-channel of learning strategy and financial stability.
